Federal tax liens can really make your life miserable! When your taxes are not paid, the IRS establishes a lien against all of your assets (especially real estate). This gives the IRS the legal right to collect taxes from the sale of your assets, which includes just about everything you own.
The lien can be against you, your spouse or your company. A lien against your company would seize your accounts receivable. At this point, everything you own is just one short step away from becoming the property of the United States government. It is very difficult for most people to move forward after such drastic actions.
Liens filed against you by the IRS also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don't want the extra work when the IRS comes in to take your money. Life without a bank account can soon become cumbersome and full of risks and hurdles in day-to-day finances.
With a federal tax lien on your record, you can't get a reasonable loan to purchase a car. Think about paying 18 to 22 percent interest on a car that is already too expensive. You definitely cannot buy or sell any real estate. Once you get in this situation, you will discover the list is endless.
Addressing back taxes owed through legal, reasonable methods such as a payment plan is vastly preferable to the situation you could find yourself in if the IRS places liens on all your possessions. Allen Schuldenfrei, Attorney at Law, is here to help you avoid or resolve tax lien problems.
Prevent Or Overcome IRS Tax Levies
For advice on IRS tax troubles such as a tax lien or levy, please contact me, attorney Allen Schuldenfrei, at
Call 410-358-7435 or through the online form. I serve clients throughout Harford, Howard and Anne Arundel counties.