Not paying one’s taxes can have serious consequences. The reasons for not paying can vary, and in some cases, Georgia residents may not have the means to pay what they owe to the IRS for income tax. Unfortunately, if steps are not taken to address the situation before delinquent taxes occur, a tax lien could be placed on the taxpayer’s property.
If the IRS has attempted to contact a person in efforts to collect on back taxes and has been unsuccessful, the agency may choose to use a lien against the property in an attempt to get what it is owed. The lien could mean that a person cannot sell the property, such as a home, even if he or she wanted to. Plus, if the taxpayer continues to avoid his or her outstanding balance, a tax levy could be placed on the property, which means the IRS seizes property from the owner to cover the taxes owe, which could include garnishing wages.
Unfortunately, a tax lien could have a number of negative effects on a taxpayer’s situation including:
- Losing out on home equity when trying to sell or refinance a home
- Seeing a decline in one’s creditworthiness as creditors and potential lenders find out about the lien
- Sacrificing time while trying to contact the IRS about the lien and possibly having it removed
- Ending up with a tax levy if the lien is not properly addressed
Fortunately, even if a Georgia taxpayer does end up facing a tax lien, these negative effects may be mitigated if he or she takes action as soon as possible to address the lien. The options for handling this type of ordeal are not always clear, so ensuring that parties have the right information is essential. Luckily, experience tax law attorneys are available to help individuals interested in addressing their predicament head on.