You are delinquent on your taxes you may already know how tough it is to remove a tax lien. When you owe the IRS and do not pay by the time frame given, you can and will be subject to some pretty severe collection methods! Regardless if the past due taxes are personal, property or business the IRS takes this matter very seriously!
When you become delinquent on your taxes the IRS sends you a few notices. Each letter will have a specific time frame in which they require you to contact the IRS. You should NEVER ignore these letters or time frames! This is the IRS’s way of giving you time to figure out a way to pay what you owe or at the very least to contact them to work out an arrangement to pay.
By simply pretending you never got the notices from the IRS, you are basically telling them that you have no intention to pay. This in turn forces the IRS to enact aggressive collection activities.
One of which is a tax lien. This is basically a hold on your property and assets. If you try to sell anything the IRS will take that money. This is the government’s way telling you that you have to pay them and you will not be able to sell anything you own until you do.
Trying to remove a tax lien is complicated. You really should contact a tax professional to help you with the extensive paperwork and documents proving your financial situation prior to contacting the IRS.
By the time a tax lien has been placed against you, the IRS has already assessed penalties and interest onto your balance. These penalties and interest can easily double your original debt in less than five years! It is for this reason that you should not procrastinate in contacting the IRS and trying to work out a payment plan.
The only way to get the IRS to remove a tax lien is to prove to them beyond any doubt that you will pay what you owe in another way. This may mean a monthly installment agreement, or an offer in compromise. Both are complex and you would be wise to seek out a tax professional to assist you in preparation as well as on your behalf when contacting the IRS.
The IRS wants to work with you if you show a sincere interest to pay your debt. However, if you ignore their attempts, it could be viewed as tax evasion which could also open you up to criminal charges. It is imperative that you contact the IRS either directly or through your tax professional and try to work something out. At the very least, to let them know you do WANT to pay your back taxes, but are currently not able to financially.
It is tough to get the IRS to remove a tax lien, but it is not impossible! Show sincere effort to pay and a willingness to work out a payment plan and your life could become much less stressful.