Are you facing a Federal Tax Lien on your Cincinnati property? Federal Tax Liens are serious legal instruments used by the Internal Revenue Service to collect delinquent taxes. Right now, you may be fearful, confused or even enraged. But your actions today will have a dramatic impact on your future. Continue reading to learn about the dangers these Liens pose and the advantages of contacting a Cincinnati Tax Law Attorney.
Once the Internal Revenue Service files a Federal Tax Lien against your property, you will receive written notice of:
- The property address against which the Federal Tax Lien is filed;
- The Lien amount;
- The county in which the Lien is recorded; and
- Contact information for the Internal Revenue Service.
How Do Federal Tax Work?
Despite their urgent calls and letters to you, the Internal Revenue Service is patient. Once they file the Federal Tax Lien, they wait as long as it takes for you to sell your property. The Lien stays in place until you or even your heirs finally sell. At that time, the Internal Revenue Service will be there to take as much profit from your home sale as needed to pay off your Lien. They take funds before you or even your mortgage company, if any, can take anything. Even as the property owner, your right to determine how to spend your own home sale profits is taken from you.
Taxpayers often do not understand the many ways Federal Tax Liens can harm them. Consider your:
- Relocation Options: Does a higher paying job appear to be your best option to pay down all your debts, including your Lien? If this dream job requires you to move, you might not be able to afford it. After selling, the Internal Revenue Service will take from your profits to clear your Lien; you could be left unable to afford a down payment on your next home, or even moving expenses and an apartment deposit. Federal Tax Liens can determine the next job you take.
- Retirement Plans: Would your home’s equity help with your retirement plans? When you someday sell to collect that equity, the Internal Revenue Service has first rights to it; after they take what they want to clear your Lien, you could be left broke. Federal Tax Liens can ruin your retirement plans.
- Home Value: If your home’s value has diminished lately, selling it may not completely remove your Federal Tax Lien. Imagine selling your home and not making enough to remove your Federal Tax Lien and pay-off your mortgage, if any. Worse still, you may have nothing left for a down payment on another home. Federal Tax Liens can erase all the financial progress you have made up until now.
- Credit Score: Your credit score may nosedive once Experian, Equifax and TransUnion learn about your Lien. Higher interest rates could await you, as well as the withdrawal of credit, insurance or employment offers. Federal Tax Liens can wreck the creditworthiness you built over a lifetime.
Help Me Clear This Federal Tax Lien
A Cincinnati Tax Law Attorney can help you. Plan to do this alone? Consider these questions:
- How much do you really know about Internal Revenue Service code and procedures? How many Federal Tax Liens have you personally cleared?
- If you did not stop the Lien from being filed yourself, can you really remove it yourself without endangering your financial future?
- Often the Internal Revenue Service credits small payments as payment in full on Federal Tax Liens, if such a settlement has been negotiated. They probably did not tell you that, did they?
- The Internal Revenue Service looks out for its own interests. Who looks out for your interests?
Prior run-ins with aggressive creditors or even ill-tempered litigants may not equip you to battle against a Federal Tax Lien. Battling the Internal Revenue Service means battling the United States Federal Government, in its vast reach and powers. Battling them alone is naïve and risky.
Take bold, wise actions today. Contact a Cincinnati Tax Law attorney. Get someone who will look out for your interests.