How Tax Lien Can Affect Tax Payers
A tax lien is of no benefit to a tax payer. It can rather have adverse effects on your life if you fail to pay tax on time. Many tax payers in Washington dont realize the danger of not paying the tax. When you dont pay tax on the right time the IRS can attach a lien to your property. It has got the power to do this to collect the unpaid tax. The lien attached to your property will remain in place until and unless you clear the unpaid tax.
There wont be any problem if you voluntarily pay the amount, otherwise the IRS will collect the amount by forceful means. IRS can apply harsh collection methods on you if you dont show any interest to pay the tax. Once the lien is attached to your assets only IRS will have the rights over those assets. You can restore your rights on your property only after the tax lien is removed. That means you can not sell the property. So it becomes very difficult to obtain the desired credits.
Tax lien is usually filed on tax payers who dont agree to cooperate with IRS. You should notice that IRS doesnt file lien at first. It rather sends several notices to the tax payer before taking any action. The notices are sent for several months to inform the tax payer the amounts owed. You would see that each subsequent letter is getting harsher. If you dont respond to those letters the IRS will have no option other than placing a lien on you.
If you find that a lien has been filed even after you have filed your last tax return on time and not received any prior notice, then the lien must have been filed in error. In that case you should immediately contact the IRS to resolve the issue.
Filing Washington tax liens is the first step that the IRS takes in order to collect the tax forcefully. The purpose of filing a lien is to compel the tax payer to pay the tax. If the tax payer is still not ready to pay the tax the IRS will begin to levy. This is even worst because the IRS will literally cease the tax payers assets in order to pay for the owed amount. Bank account levies and wage garnishments are the most popular forms of levy.
The lien will only be removed when the tax payer comes to an agreement with the IRS. The person needs to pay the tax amount in full. Many people are unable to pay back the taxes. But they dont realize that IRS has several options for those who can not pay the tax. There are thousands of people in Washington who really can not pay the tax. Hence IRS designs various methods to resolve the tax problems of individuals. Whatever your financial situation is IRS ensures that you can pay the tax. The most common form of paying tax is paying the amount in installments. You can make monthly payments instead of paying the full amount at a time. Check with the IRS to find the best option for you.
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