Whether personal or business, a tax lien can damage credibility and lead to a subsequent tax sale. The legal and financial hassle it brings with it is something no one wishes to face. A tax lien attorney can help you get out of trouble, but it is important to know how to handle the situation if it ever arises.
What Is a Tax Lien?
You are liable and obliged to pay your taxes in full and on time. Failure to do either can result in a notice getting filed against you, which should be an alarming situation for you. If you still fail to pay your taxes, you get a tax lien which is the government’s right to claim and sell your property if you fail to pay your debts. This selling of property is known as a tax sale.
Tax liens hinder your credibility, and it will become almost impossible for you to get a loan from a lender. If the lien is on your business, then people’s trust in your company will shake as a tax lien notice is public.
How to Get Past a Tax Lien?
Pay Your Tax Bills
Sometimes it is the only option you have. Look for sources to borrow money from that are friendly with you. Reach out to your friends and family as you can explain your situation to them personally and decide a date you will pay them back. The government, on the other hand, will have its own (strict) final date.
Remember to always cooperate with the tax personnel. If they reach out to you, reach them back. If they ask for any documents, provide them with it. Delaying the inevitable will only get you in more trouble.
Try to Strike a Deal
You will have to go through a lot of documents and rules before you can go for this option. The government has some offers through which you can settle your tax debts by paying a less amount, but it comes with a lot of conditions. If you can fulfill them and your current priorities suggest, you can go for it. But remember, not all applications get accepted.
You can always ask the court to revise your case if you think there is a mistake or the system is being harsh to you. If the person who has decided to put a tax lien on you is not someone with listening ears, appealing in the court can help.
Discharge of Property
This option comes into play if you have a tax lien on more than one property. You can get one of them discharged if the remaining properties are worth more than the amount you owe in taxes.
A tax lien is not good for your reputation in any way, and you should not take it lightly. Try to pay all your taxes on time. But if a situation does arise, you should hire a tax lien or tax sale attorney as they are better equipped and experienced in these matters.