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Getting tax liens released

On Behalf of | Jul 28, 2017 | IRS Issues

Some Georgians fall behind on their taxes or are unable to pay them in full. When a taxpayer doesn’t pay what the IRS believes it is owed, the IRS may place a lien on the taxpayer’s assets. When the IRS does this, the lien will apply to all of the assets that the taxpayer owns, including those that are acquired after the lien has gone into effect.

When the IRS assesses a tax debt, it then sends a demand for payment to the taxpayer. The taxpayer will then have 10 days to take care of the debt. If the taxpayer does not pay it during those 10 days, the IRS can then file a notice of tax lien in the court. This is a public notice, and it can result in significant problems and public embarrassment for the taxpayer.

It is possible to get a tax lien removed by paying the taxes that they owe for the lien in full. They may also get them released by posting a bond with the IRS along with a promise to pay the balance. Recently, the IRS filed a tax lien against Floyd Mayweather’s $29 million home for a tax debt of $3.3 million. Mayweather was able to secure a lien release by paying the $3.3 million debt.

Tax liens can be problematic and can prevent people from being able to sell the property against which the liens are placed. If the taxpayers owe more than $50,000 in taxes and penalties, they may also be unable to travel as the IRS has the power to prevent people from getting passports when they owe large tax debts. Taxpayers may benefit by consulting with a tax attorney about how they might take care of their tax issues.