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Why IRS uses Tax Liens

Monday, April 16, 2012
Have you ever heard of a tax lien? If you haven’t, perhaps that is a good thing. IRS revenue officers frequently have to issue tax liens to tax payers with unpaid tax balances as a way to secure payment for that balance. When the IRS revenue officer assigned to your case sends you intent to lien, which means that you have an unpaid balance and have not taken he steps to rectify it, which leaves them no choice but to lien against your personal property in order to pay that debt off. When IRS Revenue Officers Use Tax Liens An IRS revenue officer will use a tax lien when unpaid tax balances are due after the tax payer has failed to pay or even attempted to contact the IRS revenue officer in order to pay the balance due. The IRS revenue officer will first send out a warning notification to persuade the tax payer to contact the IRS revenue officer assigned to their case in three different steps: • The IRS revenue officer will assess and verify the tax amount due. • The IRS revenue officer will send you an intent to lien or notification of warning • The IRS revenue officer has noted that you have not made a payment on your debt after 10 days from receiving the notification How a Lien Will Affect You When an IRS revenue officer places a lien on your social security number it will go against your credit score. Creditors can raise interest rates, you can have difficulty getting new credit and the lien will stay with you until it is paid in full and removed by the IRS revenue officer. It is impossible to hide a lien once an IRS revenue officer places it until it is paid in full. How to Pay an IRS Lien When a lien is placed by an IRS revenue officer, you will have to pay it in order to remove it. You can pay the tax balance in full so that you can have the IRS revenue officer lift the lien immediately or you can use optional payment methods such as the Installment Agreement or the Offer in Compromise. If you have a lien or have received a notification of lien from an IRS revenue officer, contact a professional skilled in dealing with IRS revenue officers. The professionals at My Tax Attorney can help you not only rectify your outstanding tax debt, but stop the lien from taking place and the IRS revenue officer from ruining your credit. Need more information from the government and IRS about bank levies? Check out what the IRS says about a bank levy. Find out the difference between a bank levy and a federal tax lien. For more information, read about the bank levy procedure from Wikipedia. You can also find what your local state has to say about a tax levy by using your state and bank levy as a keyword to search Google. You can also visit the local Beverly Hills Bar Association.