When Faced With A Tax Lien, It Is Time To Act

Dealing with any sort of tax issue can feel overwhelming, but when the IRS notifies you that they have imposed a tax lien against your assets — tensions can reach an all-time high. While a serious matter, it is possible to work around this issue with the appropriate steps. 

Assess the Matter

The IRS has several cross-checking systems in place to ensure they have the most accurate information for all taxpayers. Still, humans generally operate these systems, so there is always a possibility of error. Thoroughly review the lien to ensure it is accurate. In addition to incorrect information concerning your payment history, the debt might be old enough to exceed the statute of limitations. If any error is found, you want to notify the IRS.

Plan for Action

If the information submitted by the IRS is accurate, it is time to act. One of the greatest misconceptions people have about tax liens is the assumption that they are the final step. While it does take some time for the IRS to initiate a lien, this status change does not mean that you have exhausted all your efforts. The best thing for you to do at this moment is to contact an attorney to discuss your options.

Review Your Finances

Next, take a review of your finances. The goal of the IRS is to have the debt resolved. Therefore, when you contact them, they will be most interested in learning how you plan to resolve the debt. A review of your finances will help you determine how much you can afford to contribute to the amount, whether through a lump payment or a payment plan. It is important that you ensure the amount you determine is comfortable so that you can maintain any agreement made.

Request a Settlement

Once you have reviewed your finances, your attorney can help you proceed with a settlement request. Another thing that some people do not realize is that the IRS will sometimes accept payments in an amount that is lower than the total due. However, the settlement offer must be reasonable. Your attorney can help you file the paperwork, and once accepted by the IRS, ensure that the lien is removed, and your account is placed back into a good standing status. 

Speak with an IRS tax problems attorney in your area to learn more. They can help you figure out what to do next.