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Unpaid taxes could lead to a federal lien

On Behalf of | Jul 2, 2020 | IRS Issues

Taxes are often a burden for many reasons. Even if individuals want to stay on top of their tax obligations, they may face financial hardships that prevent them from paying their taxes, or they may be confused about how to appropriately handle certain tax-related matters. Unfortunately, this could mean that a federal lien is placed on a person’s property for unpaid taxes.

A Georgia resident could end up facing such a lien if the IRS assesses the person’s tax liability and sends a notice and demand for payment, which is essentially a bill with the owed amount indicated and instructions for it to be paid in full by the due date. After the due date lapses, the IRS will file a Notice of Federal Tax Lien that informs creditors that the government has made a claim against the individual’s property. This is understandably a serious concern for any taxpayer and property owner.

In efforts to remove a lien, the individual could pay the entirety of the outstanding debt, which can lead to the IRS removing the lien within 30 days after payment. If a person is unable to pay, other options like subordination, discharge of property and withdrawal are possible, but certain eligibility requirements exist for those options. Because a lien can cause considerable issues for assets, credit and any business property, taxpayers certainly want to handle this action as quickly as possible.

In some cases, a person could face a federal lien because the IRS made a mistake in processing or due to other errors, or a person may still have a lien attached to his or her property after taking measures to have it removed. Because handling matters involving the IRS can be complicated, Georgia taxpayers facing this type of ordeal may wish to consider their legal options. Working with knowledgeable tax attorneys could help concerned parties find the most viable option for addressing liens.