What is a tax lien and what do I do now?

If you’ve recently received notice that a tax lien has been placed on your property, you’re likely feeling a little worried. We understand, dealing with the IRS in this type of situation is intimidating to say the least. But, the most important thing you can do at this point is be as informed as possible about your situation, stay calm, and ask for help.

What is a lien?

To help you better understand your current situation, it’s important to know what a tax lien is.  By placing a tax lien the government staking a claim on your property. This usually occurs when a taxpayer is delinquent in paying his or her tax bill and hasn't responded to notices from the IRS. This doesn’t mean that the IRS is on it’s way to take your home, but it does give them first right to your home over other creditors should it come down to that. This lien now shows up on the taxpayer’s credit report, lowering his or her credit score and making it difficult to obtain future credit or loans until the issue is resolved.

Now what do I do?

First thing’s first, do not panic. No one is showing up at your door tomorrow to take your home. While this is scary and potentially overwhelming, there are solutions to this problem. And most importantly, hire an IRS resolutions expert to help you navigate your situation.

It’s important to hire a qualified professional because sometimes the IRS gets it wrong. You may be facing a penalty that you don’t deserve, and we help clients reduce their IRS debts all the time. By investing in quality representation from the the beginning you may save thousands of dollars at the end of the day.

Once we have sifted through all of your paperwork to make sure that the IRS dotted all their i’s and crossed all their t’s, we will work with you to contact the IRS and begin the process of setting up an installment agreement where you will begin paying off your debt in monthly increments until your debts are paid. And that’s that, your lien is removed!

The situation that started out feeling awful and scary is fairly easily resolved when you partner with the right IRS resolutions expert. At Fix It Accounting we have the pleasure of working with hard working taxpayers every day to resolve these scary issues and bring you back to financial health. If you’ve found yourself in trouble with the IRS, don’t wait another moment, call us today!