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Fighting a Tax Lien with the Help of an Encino Tax Attorney

Monday, October 3, 2011

Fighting a Tax Lien with the Help of an Encino Tax Attorney

Tax liens are daunting, especially if you are unaware of what a tax lien means for you, individually and your credit report. Many people do not fully understand what it means to have a tax lien placed against you. The government will work to make itself priority which is why you need the help of an Encino tax attorney. An Encino tax attorney can help you with your tax payments with the IRS and to ensure that a lien is not placed against you where it can hurt your credit and prevent you from obtaining necessary accommodations such as a house or car. If you find yourself facing down a tax lien, contacting an Encino tax attorney today can help you in your battle.

What is a Tax Lien?

A tax lien is a record placed upon your credit report and your social security number as a means for the IRS to ensure that they are the first to collect outstanding liabilities. Tax liens are placed against personal property such as homes and cars. Consider contacting an Encino tax attorney today to help further explain tax liens and their implications.

When can the IRS Place a Lien against my Property?

There are certain procedures that the IRS must follow in order to effectively establish a tax lien against your personal property. Your Encino tax attorney will inform you of the three steps that must occur before a tax lien can be placed by the IRS.

  1. First the IRS will assess the liability to ensure it is valid. If the liability is not valid, the IRS will review your tax returns to determine why a liability was calculated. If there is no question about the validity of the liability, your Encino tax attorney knows that the IRS will proceed to the next step in the tax lien process.
  1. The IRS will contact you via US Mail with a “Notice and Demand” of payment. This demand is actually a bill that tells you how much you owe the government in taxes and penalties. If you receive this notice in the mail, contact your Encino tax attorney right away to get the ball rolling as you only have 10 days to respond to the notice before the final action is taken.
  1. If you do not pay or make arrangements to pay your debts within 10 days of receiving the notice and demand of payment, the IRS is now legally able to place a tax lien upon your personal property. Once the tax lien is placed, it is rather difficult to remove and you will need the assistance of your Encino tax attorney.

I have a Tax Lien on my Record – Now What?

First, you want to contact your Encino tax attorney who will make sure that the proper steps were followed in placing the tax lien upon your personal property. Your attorney will then work with the IRS with your approval to come up with an acceptable payment plan. However, it is very difficult to have a tax lien removed when it has been placed due to non payment. Utilize the services of the expert you have hired – your Encino tax attorney – to help you get the best results and a possible lien removal. Because these liens can severely impact your credit, you want to make sure you handle the situation sooner rather than later.