IRS Liens
The IRS and State taxing agencies have the power to collect back taxes by levying on taxpayers’ property as a result of a Tax Liens. 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. The tax lien attaches to all rights, title and interest of the taxpayer. Once the IRS or a state tax agency have a tax lien on all of a taxpayer’s assets, they may enforce that tax lien by administratively levying his or her assets.
A tax lien is filed by the government to protect its interests. Recorded with one or several county recorders, a tax lien basically tell the world that you owe back taxes, and is generally devastating to the taxpayer’s credit. Tax lien make 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, a tax lien will arise for the balance of the tax.
Tax Helpers
Posted: June 2nd, 2007 under Money, Real Estate, Tax Liens.
Tags: Assets, Back Taxes, County Recorders, Federal Tax Lien, Interest Penalties, Irs Liens, Money, Real Estate, State Tax Agency, Statutory Requirements, Tax Liens, Taxes Irs, Taxpayers