Taxpayers with tax liabilities that remain unsatisfied will all, in time, face collection activity by the state or federal taxing authority. While the exact action taken will be dependent on the amounts owed and the particular obligation, these agencies have an array of legal tools to force repayment. For instance, if your tax debt is federal in nature the IRS may file legal papers to establish a tax lien, a wage or bank levy, offsetting of your tax refund, or the seizure of all or some of your property and assets. Left unaddressed, a tax debt can drain one’s savings, investments, and retirement accounts.
To release your IRS wage garnishment or settle your tax debt: call us today at 1-800-790-8574.
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One particular difficulty that is common when a lien or levy has been put in place involves the sale, purchase, or refinancing of real estate. Typically, before one may sell a property with a lien, the lien must be addressed and removed to provide the new buyer with clear title to the property.
Furthermore, if a taxpayer is considering refinancing his or her already existing mortgage, he or she will run into difficulties due to the lien. In order to refinance, the owner and taxpayer must request relief from the IRS through the agency’s consent to subordinating the lien so that the first mortgage may be satisfied. In some circumstances the IRS may be willing to grant this request because a reduced mortgage payment can free up resources to pay the tax debt. However, the agency is not under any obligation to grant this request.
Aside from the direct effects an unpaid tax debt can have on your financial accounts, the unpaid tax debt can also make it more difficult to get approved for a credit card, loan, or any other line of credit. This is because unpaid tax debts are reflected in one’s credit report. Unpaid tax debts will negatively impact an individual’s credit score and may result in additional financial difficulties. Any tax lien will appear in one’s credit history report for a minimum of 7 years but the information may appear for as long as ten years.
Furthermore, one the IRS takes action and files a Notice of a Federal Tax Lien (NFTL), the tax debt becomes a matter of public record. The taxpayer’s home address, tax amount owed, relevant tax periods, and additional information all becomes part of the public record. This may be embarrassing for some people. Others may not wish to have their name or family name associated with an unpaid debt.
Owe the IRS and need help? Call us to discuss your unique situation (800)790-8574 or visit www.advancetaxrelief.com
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