Berkshire Tax Resolution - Tax Lien

The IRS and State taxing agencies have the power to collect back taxes by levying on taxpayers' property as a result of a Tax Lien, explains Berkshire Tax Resolution. When a person owes back taxes, the IRS and state agencies gain a tax lien on all that person's assets after meeting certain statutory requirements. Berkshire Tax Resolution would like to point out that the tax lien attaches to all rights, title and interest of the taxpayer. Once the IRS or a state tax agency has a tax lien on all of a taxpayer's assets, they may enforce that tax lien by administratively levying his or her assets, explains Berkshire Tax Resolution.

Berkshire Tax Resolution would like you to be aware that a tax lien is filed by the government to protect its interests. Recorded with one or several county recorders, a tax lien basically tells the world that you owe back taxes, and is generally devastating to the taxpayer's credit. Berkshire Tax Resolution states that tax lien makes it very difficult to obtain credit or to sell real estate.

The effect of the Federal Tax Lien statute is that when any person fails to pay any assessment of tax, plus interest, penalties, or costs, a tax lien in favor of the United States arises upon all property and rights to property, whether real or personal, tangible or intangible, belonging to the taxpayer. Even if the taxpayer makes partial payment, Berkshire Tax Resolution would like you to know that a tax lien will arise for the balance of the tax.

Although the taxing agencies are extremely reluctant to release or modify tax liens, Berkshire Tax Resolution might be able to get the government to subordinate its tax lien to a lender, thus allowing the client to borrow money against his assets to satisfy all or part of the tax lien. Berkshire Tax Resolution’s tax lawyers also make sure that the tax agencies have met all legal requirements for a legal tax lien filing. If any defects are discovered in the tax lien process, Berkshire Tax Resolution’s tax consultants immediately appeal the filing of the tax lien.

Q: What Property is subject to a tax lien?

A: Berkshire Tax Resolution sheds light on the fact that a tax lien covers all property a taxpayer owns plus any future property they may acquire. The rule keeps it very broad and open to interpretation and can pretty much cover anything. Berkshire Tax Resolution would like you to know that the property can be both tangible assets and intangible assets.

Can a tax lien be released?

A: Berkshire Tax Resolution says: Yes, a tax lien can be released. The IRS requires you to get back into compliance with your taxes for the lien to be released. You can release a tax lien by paying in full, settling through an offer in compromise, letting the statute of limitations expire on the tax debt, or if the IRS accepts a bond that guarantees payment of the tax debt, explains Berkshire Tax Resolution.

Q: How can I avoid a tax lien?

A: Berkshire Tax Resolution points out that the best way to avoid a tax lien is to stay in full compliance with tax law. If you find you cannot pay taxes it is best to contact the IRS and make an agreement with them to pay your taxes back through one of the various settlement mechanisms instead of avoiding or not taking immediate action on IRS notices that have been received, clarifies Berkshire Tax Resolution.

Q: Why did the IRS file a tax lien on my property?

A: The main reason why the IRS files tax liens is because of unpaid income taxes. There can be various reasons as to why taxes were not paid, but when the IRS finds a taxpayer that they feel may be trying to not pay their taxes they will place a lien to ensure they will get payment of the taxes they owe.

Q: What is the difference between a tax lien and tax levy?

A: Berkshire Tax Resolution would like to inform you that a tax lien is only the government’s "invisible" claim on the property that is owned by the taxpayer, but a tax levy is the actual seizure of the assets owned by a taxpayer. Berkshire Tax Resolution would like you to know that, with a levy the IRS can take money from bank accounts, garnish wages, or even seize physical property owned by the taxpayer.