IRS TAX LIEN. The IRS Collection Process involves what are known as CP letters. They usually start out with a notice that you have unfiled tax returns, or if you filed your returns and owe money, to contact the IRS and or make a payment arrangement. If you do not or cannot pay them, the Collection Letters progressively get nastier, until they either go after your paycheck or bank account, and or put a LIEN on you.

Many people are mistaken in that they think the lien attaches to some random item, it does not. It attaches to a taxpayers Social Security number, and by extension any property that you purchase with the Social Security number then is covered by the IRS TAX LIEN, which is on the Social Security number. It can cause havoc on your ability to buy and sell a multitude of items. We have had many individuals come to us trying to sell a home, only to find out the tax lien they thought would not show, actually did show up upon the closing of the sale, causing the sale to go up in smoke.

A Federal Tax Lien can wreck havoc on your Credit Score also. Having one will impact your score. This can limit your ability to get credit and hurt you financially. The ability to wipe out a negative Credit score, due to a  Tax Lien can take some time, and it is best to contact a good Tax Professional. Fortunately, good Tax Resolution Companies can help.

There are several ways to get rid of a Federal Tax Lien. The best is paying in full, but the large majority of taxpayers are not in that position. It is always best to know all of your options prior to jumping into any options for dealing with your back taxes. You may qualify for a reduction, or a waiver of some of your penalties. In some cases, getting the lien removed will happen, under certain conditions, and knowing those conditions, and how to achieve them is best determined, after knowing every option for dealing with your back taxes, including options to see if you qualify for any reduction in what you owe.

Relief: Owed Taxes


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