If you’re a homeowner, there’s a good chance that you’ll run into a tax lien at some point. The IRS places tax liens on your property to collect unpaid taxes and debts. However, they can also affect other parties if they go unpaid. If you have questions about how to find out if you have an IRS tax lien or what it might mean for your future home ownership options, read on!
What is a tax lien?
A tax lien is a security interest in a real property designed to secure the payment of taxes. A tax lien may be obtained against an owner’s interest in the property by filing a Certificate of Tax Lien with either:
- The County Clerk’s office where they file their annual return; or
- The Secretary of State’s office if they do not file an annual return at all.
The holder of a certificate may redeem it after paying off all outstanding balances plus any applicable penalties and costs within three years from when issued but must give written notice to whoever owes them before redeeming it (unless otherwise specified on their certificate).
How to find out if you have a tax lien?
- You can check the IRS website. The IRS lists all federal tax liens, updated several times a year.
- You can call the IRS and ask about your tax lien status. They’ll provide you with information on how to get in touch with them if necessary (e.g., if it’s something that needs documentation).
- Check your credit report for any signs of unpaid debts or judgments against you from other creditors/loan companies related to this situation; this includes student loans, car payments, and other items like these that may show up on one’s report too!
What are the different types of tax liens?
There are several different types of tax liens:
- Federal tax lien. If you have a federal tax lien, the IRS filed it against you to recover money owed in taxes and penalties. The IRS can seize property to satisfy this debt even if it hasn’t been posted on your home or land.
- State tax lien. If your state has filed a lien on your property because you owe unpaid state income taxes, they’ll probably seize everything they can get their hands on until they’re paid up—including cars and boats!
- Property tax lien (also known as real estate foreclosure). This type of lien involves an unpaid assessment for property taxes that aren’t covered by another type mentioned above; once again, the government will take everything possible until all debts are satisfied.
If you have any questions about Tax Lien, it is best to consult a tax Professional at Tax Lien Code.
How to avoid having a tax lien?
- Pay your taxes. The IRS will file a tax lien against your property if you don’t pay.
- File on time. If you miss filing your federal income tax returns or extensions, or if they’re filed late, the IRS can still take action against you through other means—like issuing a Notice of Federal Tax Lien or sending out notices of federal tax liens individually to affected homeowners (or even businesses).
- File an extension if necessary. The longer it takes for someone to file their taxes and pay them off in full, the higher chance they have of having some sort of penalty imposed upon them by way of interest charges accrued during that time period; this includes having their payments go towards repayment efforts instead being applied towards what was owed originally! In addition to these penalties being incurred when filing late with insufficient proof/evidence available at hand; there are other situations where filing extensions might be beneficial too: such as if someone needs more time than usual due mainly because they’ve been suffering from certain health problems such as depression which makes working harder difficult sometimes impossible–so using an extension would allow them more opportunity before getting caught up again later down the line.
Can You Sell Your House With an IRS Tax Lien?
If you have an IRS tax lien, the answer is yes. You can sell your house with a tax lien and pay the IRS the amount of their lien. However, there is one caveat: before you can sell your house with an IRS tax lien on it, they will need to release it from their records so that they don’t incur any more penalties or interest payments while they wait for buyers who are willing to buy houses with liens attached.
How does a tax lien affect me?
A tax lien negatively impacts your credit score, making it difficult to get loans, qualify for jobs and even buy things in the future. If you have a tax lien on your record, it may be wise to pay off the debt as soon as possible so that you can develop a good credit history.
If someone owes you money but does not acknowledge the debt,, they are said to have an unpaid tax bill or balance due. This is where this service comes into play because we can check through our databases and find out if there are any outstanding debts owed by individuals who owe money from their last year’s returns (or other years).
Tax Lien Filing Process
The IRS can issue a tax lien if you owe taxes and don’t pay them. Generally, agents will only issue a tax lien if your tax liability is $10,000 or more, but there are some exceptions. The IRS must take several steps before issuing a tax lien, including sending a notice and demand for payment, allowing the taxpayer to appeal, and conducting a hearing:
- Estimate your tax liability. Either by the taxpayer filing the return, the IRS filing the replacement return, or determining the tax in the audit.
- Send you a reminder and give you 10 days to complete it.
Then the taxpayer does not have to pay bills or take other steps to deal with tax obligations. Once these elements are in place, the IRS can file a tax lien with your local Deed Recorder or Secretary of State.
Conclusion
As you can see, there are many reasons why having an IRS tax lien on your property is bad. If you are concerned about being sued for back taxes before selling your house, consult a tax Professional at Tax Lien Code.
