Government Tax Liens

FinanceTax

  • Author Amit Raju
  • Published March 29, 2008
  • Word count 468

After assessing your liability towards the taxes, government issues a notice with a demand note. If you neglect the notice or refuse to pay the dues within the specified time, a government tax lien is created. Government tax liens provide the government a legal claim to defaulter's property to meet out the pending tax debits. On creation of government tax lien all of your creditors are publicly informed about your dues.

Government tax liens cover all of your assets like property, car and business accounts. A government tax lien adversely affects your credit rating. After this you wouldn't be able to get a loan to buy property or some capital equipments. You will also lose your credibility to get any credit card and to sign a lease in future. Hence, it is very important to resolve government tax liens at the earliest possible.

You may request for an updated government tax lien payoff amount any time. The concerned IRS employee provides you complete information about the balance due. When you pay your tax dues after issuing of government tax lien, you also pay jurisdiction and administration charges. After the creation of government Tax Lien you are informed of it within 5 working days. After receiving this notice, you may contact an IRS manager to review the complete case.

You may also request to the office of appeals for hearing of collection process by the last date marked on notice. Publication 1660 provides complete information regarding this aspect of appeal against government Tax Lien. During the hearing, you can tell that government tax lien was created during the period when you were in bankruptcy. In such a case you get automatic stay. You may also request to extend the payment period claiming that you need certain time to settle the liability settlement dispute.

At the end of hearing of your collection process, IRS Office of Appeals issues a determination notification. This certificate may support existence of current government tax liens or it may release the government tax liens for some time. If you are not satisfied with the appeal judgment, you can proceed for judicial review. A notice of releasing government tax lien is issued within 30 working days after you pay your tax dues in full or get these adjusted other way.

While selling your property or transferring the rights, you should apply for a Discharge Certificate. Under certain conditions, the third party may also request for Discharge Certificate. 783 Publication of IRS provides complete information about application process.

Anyone can get the advantage from government tax liens sales. A certificate of government Tax Liens are available at very nominal cost. But before purchasing government tax liens, you should confirm about the rights of tax debtors. You should also confirm about the mode of payments before buying a government tax lien certificate.

Amit Raju owns and operates http://www.taxlienz.com, providing Tax Lien Help.

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