A tax lien is easy to understand if you break it down, as it is usually the first major application used by tax authorities (State or IRS). A bond in general is a right or guarantee of interest on personal property to guarantee the payment of a debt. Thus, a tax lien is a lien imposed by federal or state law to secure payment of back taxes. A tax lien can be placed on your personal property and communicated to the world through the office of “Secretaries” or the state registration system. Usually, the IRS or the state will notify you of unpaid taxes first. If you choose not to act (depends on the state, as procedures vary) within 10 days, a tax lien will be issued on your personal property. This issue notifies the public records of the government.
What are your options?
Option 1: Do nothing and wait.
A tax lien is generally not enforceable after 10 years, but during those 10 years, the IRS or the State can take action by seizing property (banks, houses, etc.). Also, a tax lien stays on your credit report for a long time, and you don’t want to hurt your credit. Option 1 is not recommended.
Option 2: Pay the link
After 30 days, the link will be released/removed. Easier said than done. Many people are unable to pay the amount without experiencing the ultimate fight. If you can’t, you should look to work with professionals (tax attorneys and CPAs) as most people face this problem. You CANNOT sell your home or personal property until you take care of the tax lien.
Option 3: Set up a payment plan with the state or IRS
Working with specialists makes it easy and if you set up a payment plan or offer a commitment, things can be under control. Many tax debt reduction companies only charge you fees if they save you thousands of dollars, so it’s a win for you.
