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How Do Tax Liens Work?

  • If you’re behind on your taxes, the IRS has many ways of convincing you to pay. Your wages could be garnished, your bank accounts could be levied, and liens could be placed on your personal property.

    What is a tax lien? A lien is a claim against your property that your debt collectors can place. It’s a legal interest in your property that makes it difficult for you to sell that property without paying your tax bill.

    A lien is different from a levy. A levy is when the IRS actually seizes your personal property with the intention of using that property to pay off your tax debts. The IRS often levies paychecks and bank accounts but may hold off on placing a lien until it’s absolutely necessary.


    Can Tax Liens Be Released?

    Tax liens can be released. If you work with a tax attorney, your lawyer will know how to get the IRS to release the lien. There are ways of communicating with the IRS to show the agency that releasing a lien would actually be in its favor.

    For instance, if your lawyer helps you enter an installment agreement to pay your back taxes, the IRS may release the lien on your property.

    Liens are common when a person owes a great deal of money in back taxes or if the person has not made any effort to contact the IRS and work out a payment solution. However, if you have a lien on your home, it’s not too late to get things straightened out.


    Need More Information on Tax Liens?

    If you have further questions relating to a tax lien on your property, contact the W Tax Group. We can take a look at your unique tax situation, your income, your debts, and your assets to find a solution to your problem. There is almost always a way to resolve your tax debt, but you must take that first step of contacting a lawyer.

    You can reach us by calling 1-877-500-4930 or visiting our website and filling out our online contact form.