Taxes Are you currently dealing with a tax lien? This can be imposed for many reasons. No matter what situation you are in, one thing is for sure: this is going to have negative effects on your personal life and finances. It is important to know about the effects so you can do your best to avoid the. Of course, if you are facing a tax lien there may not be much you can do to avoid these effects and keep things together. A tax lien makes it next to impossible to secure new credit. If there is a lien on your credit report you will not be able to get a loan for real estate, a car, etc. The same holds true if you want to apply for a credit card. Simply put, a tax lien imposed by the IRS can more or less freeze your ability to receive additional credit in the near future. This is something you should be very concerned with. When will the negative effects go away? This is an excellent question. First off, if you pay your liability the IRS will release the lien. This is the best way to eliminate a tax lien. The IRS is willing to work with you in finding a way to pay the money that you owe. Secondly, there is a 10 year statute of limitations on tax liens. This means that the IRS can only enforce a tax lien for this period of time. Of course, 10 years is a long time to deal with a tax lien. One of the best ways if you are unable to pay in full your taxes to release a tax lien is to setup an IRS payment plan like an IRS Installment Agreement. An IRS Installment agreement is an agreement between you and the IRS to pay your taxes off over time through monthly payments. However, if you miss a payment you could be dealing with a tax levy soon it is in your best interests to be diligent in making payments. If you ignore a tax lien the IRS will take your assets and sell them off as to collect what you owe. As you can imagine, this is the worst out.e of a tax lien. At this point, the IRS will serve you with a tax levy and this levy can be on your wages (wage garnishment) or on your bank account (bank levy) in which the IRS will take money out of either or. The potential negative effects of a tax lien should scare you from ever wanting to get close to dealing with this problem. About the Author: 相关的主题文章: