In simple terms, a tax lien in Bell Canyon, CA, is a government’s legal claim against your assets, such as property or vehicles. If, in the recent past, you failed to pay your due taxes to the IRS despite repeated reminders. There is a chance that the taxman shall put a lien on your assets.
This is basically a document telling your creditors and other interested parties of the government’s claim on your property. Lien can be problematic for a number of reasons, such as limiting your ability to source further loans or inability to sell your assets.
Getting a tax lien is not an ideal situation for any individual or business. It can further increase your financial worries for the foreseeable future. However, you should not let it get the better of you, as a range of options may be available in such circumstances.
So, if you are wondering about how to deal with an IRS tax lien in Bell Canyon, CA, or other parts of the states then keep reading this article.
How to Deal with an IRS Tax Lien in Bell Canyon, CA?
Well, the first thing you can do in such a situation is to simply pay your taxes. While this option is not suitable for everyone, it is possible for some people to take personal loans or source funds through other means to balance the tax liability.
In most cases, the IRS shall take off the lien within 30 days of you settling your liability. If, however, you are not able to fully pay your taxes. You may want to request an ‘offer in compromise’ (which is settling your tax liability for less than the originally owed amount). Similarly, you may request the IRS to agree on an installment plan.
While the latter won’t remove the lien straightaway, it will definitely help you in near future. If the IRS receives at least 03 installments on time, there is a chance for it to remove the lien, as long as you have the ability to pay remaining installments as well.
The good news is that you don’t need to hire a sophisticated tax attorney to secure an installments’ plan for simple cases involving a small amount of taxes.
You can apply for a payment plan on the IRS website yourself. In some cases, you may have a good chance of getting the lien removed by filing an appeal with the IRS and asking for a collection due process hearing.
You may also want to consider discharge of property, which ultimately removes lien. Since discharge is not freely available, you need to consult IRS’s relevant laws and code to determine whether or not you are able to use this option.
How Hiring A Professional Tax Attorney Can Help You?
In such a scenario, it is recommended to hire a professional tax attorney to help you through the process. It is due to the fact that IRS provisions can be complicated to understand. A professional ta consultant will help you find the right provision for you to be able to discharge your property free of lien.
‘Subordination’ is another option in an event of tax lien. This does not remove lien on your property. It allows other creditors to take preference rights on your property. It can help in securing additional loans and credit to ease your financial distress.
In short, avoid having a tax lien on your property as much as possible. But if you get it from the taxman, don’t lose heart. A range of options are always there to help you get out of this tricky situation, and a tax consultant can always help in such a situation.
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Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.