The IRS has the legal right to seize everything you own, including real estate and accounts receivable. The Federal Tax Liens can really make your life miserable!
When taxes are not paid there is a lien against all assets – especially if they have been obtained through loans or mortgages with banks for property ownership. This gives federal officials control of what will be sold off first when these liens come due; usually this includes all things an individual owns: homes/apartments, vehicles (including motorcycles), stocks and more.
When the IRS takes your money, it also files liens against you. These show up on credit reports and may often prevent opening a checking account or borrowing against any assets like home equity lines of credit (HELOCs). The banks do not want this extra work when they already have enough to do as is with revenue collection from taxes. When a bank does give out a loan to someone who has had liens filed against them, that individual can expect to pay 18-22% in interest.
How Can I Avoid a Lien?
Always contact an experienced CPA to handle the financial side of things. A lien is a general notice to the public that you have unpaid debt. Before this lien turns into a levy, an accountant can look over your financial history, help you decipher the forms and notices, and get you back on track to pay back taxes and debt.
At Patriots Tax & Accounting in Fredericksburg, VA, our goal is to help you keep what is yours – whether that be money or property. If you receive a lien notice, call us immediately to begin protecting and managing your assets.Get A Free Consultation*