If you are behind on your taxes, the government might put a tax lien on your property. If you do not address the situation promptly, the government could seize your property next. You could also reduce your creditworthiness and have more difficulty selling your home in the future. However, it is possible to stop a tax lien. Here are a few different ways to remove a tax lien.
Pay Your Overdue Taxes
The most straightforward way to stop a tax lien is to just pay your back taxes. Once you give the government the money you owe them, you will longer have to deal with a lien. You can send the payment directly through your bank account or a third-party processing service.
Request a Payment Plan
If you do not have the money to pay your back taxes, your next option is to ask for a payment plan. This will allow you to pay back your taxes in multiple installments, which is more manageable. You can easily apply for an installment plan on the IRS website.
File an Offer in Compromise
Sometimes people can't afford to pay their back taxes in full. If you are in this situation, you can file an Offer in Compromise, which allows you to pay a portion of your back taxes and still avoid a tax lien. However, keep in mind that the government has strict requirements for accepting these applications. A tax specialist may be able to help you file this document.
File an Appeal
Sometimes IRS employees make mistakes when issuing tax liens. If you do not agree with the tax lien the government placed on your property, you may consider filing an appeal. The Office of Appeals will thoroughly review your case and determine if the tax lien was necessary or not.
Preventing Tax Liens in the Future
Dealing with a tax lien can be very stressful, so you want to do everything you can to avoid liens in the future. Planning ahead may help you do this. For instance, you could consider paying quarterly taxes during the year to make the tax burden less overwhelming.
If you receive a notice from the government about a tax lien, do not ignore the problem. Respond to the government as soon as possible to prevent further issues. If you have additional questions about your tax lien, you should consult a tax specialist.
For more information on tax liens, contact a professional near you.
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