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Federal tax liens and how to handle them

| Sep 15, 2016 | IRS

When people in Georgia fail or refuse to pay their taxes, the Internal Revenue Service can issue a federal tax lien. A tax lien is secured by all of the personal and real property that is owned by the taxpayer. This includes homes, business interests, vehicles and other assets.

When the government has a federal tax lien against a person’s property, it can be more difficult for the person to sell it. The debtor may also experience a negative impact on their credit.

The best way to eliminate a federal lien is to pay all of the taxes that are owed. However, there are also other options available for taxpayers who are eligible. A discharge of the lien may be granted in some cases. People may also apply for subordination in order to allow other creditors to move ahead of the IRS. Taxpayers who set up installment agreements via debit may apply for a withdrawal of the tax lien. The tax lien may continue even after the debtor files for bankruptcy.

People who receive notices of federal tax liens might want to consult with tax law attorneys. A lawyer may be able to negotiate with the IRS in order to help the client resolve their tax debt. People should not ignore notices of tax liens against their assets as doing so may make the situation worse. The attorney might be able to secure discharges of the lien or withdrawals of the notice of the federal tax lien to help the client restore their credit.

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