The Internal Revenue Service may have you in its sights to file a Federal Tax Lien against your St. Louis property if you are behind on your Income Tax payments. You may have discovered that they do not care if you agree with them or not about the amount of the Lien; they can still file one against your property. Read below to learn how serious a Federal Tax Lien really is, and consider contacting a St. Louis Tax Law attorney for help.
When the Internal Revenue Service attaches a Federal Tax Lien to your St. Louis property, you will receive written notice of:
- The property address against which the Federal Tax Lien is filed;
- The Federal Tax Lien amount;
- The county in which the Lien is recorded; and
- Contact information for the Internal Revenue Service.
How Can a Federal Tax Lien Harm Me?
Even after being threatened with a Federal Tax Liens, most St. Louis residents still do not understand how the Lien works. Simply stated, it is an insurance policy for the Internal Revenue Service to ensure that, sooner or later, they will collect what you owe them. With the filed Lien, they step to the front of the line to collect profits from your home sale, before you or your mortgage company can collect a dime. If you are facing a Lien, you probably have other financial problems and may have considered selling your home. This is why the Lien is so effective in helping the Internal Revenue Service collect from taxpayers.
You may think the Lien filing is the worst thing that could happen to you, but your situation can actually get worse:
- If credit-reporting agencies like Equifax, Experian, and TransUnion learn of your Federal Tax Lien, they may downgrade your credit score. You could end up paying higher interest rates or even lose out on employment, insurance or credit opportunities.
- Any plans you have for your home equity, like retirement, may change. The Internal Revenue Service’s plans for your equity—paying off your Federal Tax Lien—now come first.
- If your home has lost value recently, selling it may not be enough to clear your Internal Revenue Service and/or mortgage company debt. Imagine selling your home, not having enough to pay-off your Federal Tax Lien and possibly even your mortgage; you could be left without even enough for a down payment on another home.
- Paying off your debts is hard, but a Federal Tax Lien can make it even harder. A better paying job might be the assistance you need, but if that job requires you to relocate, you might not be able to afford to move. If selling your home would not leave enough for a down payment on a home in your new job’s city—after the Internal Revenue Service takes the Lien amount—you may feel like a prisoner in your own home.
How Can I Clear this Federal Tax Lien?
Step One is contacting a St. Louis Tax Law attorney. Do not foolishly assume you can resolve this yourself. Do you have experience with Internal Revenue Service protocol? How many Federal Tax Liens have you negotiated? Ever persuaded the Internal Revenue Service to settle a Lien for a small percentage of the Lien amount? Clearing your Lien quickly, successfully and perhaps even for less than what you owe takes practice and prior knowledge, things that most taxpayers do not have. If you could not prevent the Internal Revenue Service from filing the Lien, how can you get them to remove it without losing everything you have worked so hard to attain?
Fighting belligerent bankers or fending off litigants does not give you the skills need to fight a Federal Tax Lien. Take on the Internal Revenue Service, and you take on United States Federal Government. How can you successfully do that without risking your financial future and your family’s security?
Turn over a new leaf today. Get the help you need. Find a St. Louis Tax Law attorney. We rarely regret getting good advice, but almost always regret the lack of it.