Your Columbus property may need protecting if the Internal Revenue Service plans a Federal Tax Lien for you. The Internal Revenue Service pressures taxpayers into paying overdue taxes with these powerful Liens. Whether you agree with the Lien amount or not, choose your next steps carefully; much is at stake. Continue reading to learn how Liens work and how a Columbus Tax Law Attorney can help you.
You will receive written notice of the following, once the Internal Revenue Service attaches a Federal Tax Lien to your property:
- 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.
Why a Lien?
After filing the Federal Tax Lien, the Internal Revenue Service becomes first in line—before you and even your mortgage company, if any—to collect from your property sale proceeds, whether you sell in one year or twenty. They legally will take as much as needed to pay-off your Lien. You lose your right to decide how to use your property sale proceeds because of the Lien.
Liens present pitfalls many Columbus taxpayers never realize until it is too late. Consider your:
- Home’s Value: Like many Ohioans, your home’s value may be worth less today; selling it may not yield enough to pay-off your Lien and then your mortgage, if any. And you may not have enough for a down payment on your next home. Federal Tax Liens can rob you of your greatest financial asset: your home.
- Career Options: If you receive a better paying job offer, accepting it may cost you if it requires you to move. Remember that once you sell your home, the Internal Revenue Service controls your sale proceeds to pay-off your Lien. You could be left without enough to pay-off your current mortgage, afford your next home’s down payment or even pay basic moving expenses or an apartment deposit. Federal Tax Liens can rob you of a better paying job.
- Funding Your Retirement: As you consider retirement, you may think about downsizing to a smaller home and using your equity to help fund your retirement expenses. Except that with the Lien in force, the Internal Revenue Service will take your equity to clear your Lien. You may need to reconsider your retirement funding. Federal Tax Liens can rob you of your retirement plans.
- Credit Score: Your credit score can determine which credit offers you receive, the interest rates you pay, and whether you are offered certain jobs or insurance. Equifax, TransUnion and Experian may lower your score as they learn about your Lien. Federal Tax Liens can rob you of many financial opportunities, at great personal cost.
Your best first step is to begin by contacting a Columbus Tax Law Attorney for advice and options. If you are entertaining ideas about attempting to remove the Lien yourself, consider these important issues:
- Your Insider Access: The Internal Revenue Service often accepts small payments as payment in full on Federal Tax Liens, if such an agreement has been reached in advance. Did they tell you about this? Probably not, because they want to collect as much as possible from you. What else do you not know?
- Your Track Record: Since you were unsuccessful on your own in preventing the Lien from being filed, how can you expect to be successful in removing it by yourself?
- Your Expertise: How vast is your knowledge of Internal Revenue Service rules and practices? How many Federal Tax Liens have you already removed?
Your goal of protecting your family’s financial security couldn’t be more different from the Internal Revenue Service’s goal of collecting as much money as possible.
Even prior experience fighting belligerent creditors or aggressive litigants may not equip you to fight a Federal Tax Lien. Remember, fighting the Internal Revenue Service equates to fighting the United States Federal Government, with all of its vast resources.
Make it a fairer fight. Contact a Columbus Tax Law attorney. Find someone who cares about your goals.