tax lien

Today an explanation of what is an IRS tax lien and what is the purpose of a tax lien? Liens and credit reports is bad recipe for disaster for the household economy. Big ticket purchases such as buying a home, automobile, appliances, college entrance applications, small business loans will not be as readily available if financing is a necessity.


What is a tax lien?

A tax lien is enforced by law to secure payment of taxes. A tax lien can be filed on real and personal property for a period of ten years or until the lien is paid in full.  In our experience a tax lien is initiated by the IRS if the balance exceeds $10,000.00. State taxing authorities tend to slap tax liens on any amount, so beware. Tax liens are public notices reported to the local county recorder’s office to put the general public on notice of a delinquent tax bill gone unpaid.

Tax obligations is the most basic of duty as an American citizen to pay your fair share. Lenders, employers, lottery processors and contractors have immediate access to ascertain the basic principle of whether an individual has flaws in character. A valid tax lien filing is a good indicator of behavior woes that could become problematic.

So you want to leave your home to the children? You die, children inherit a home with the taxman waiting for the settlement of estate. In order to pass clear title the tax lien must be paid in full. You are not only hurting yourself but the loved ones that follow end up paying the piper.

How to resolve a tax lien?

The resolution or settlement of a tax lien is really quite simple.

  1. Pay the balance in full, period. A tax balance due can be lowered via an IRS Offer in Compromise
  2. Tax lien can be paid by proceeds of a sale of your real or personal property forced to market.
  3. Tax lien are sometimes prioritized. Federal liens will become “junior” to state initiated liens more often than not.

Need help taking on taxing authorities? Do not go it alone, seek the affordable help you deserve. Make solving the tax lien issue a priority, the long term blowback can be devastating.

For a FREE tax relief consultation call DWK Tax group at 1-866-226-6102.  Or visit our website at

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