ANSWERS: 1
  • There are several ways the federal government can collect money from delinquent tax payers. A tax lien is one way the government may choose to collect back taxes.

    Taxes

    Each year taxpayers must pay taxes on their income and profits. If they fail to pay the Internal Revenue Service (IRS) the taxes owed, the government will take action to get payment.

    Liens

    A lien is a legal claim that someone has on your property or home due to a debt that you owe them. Liens must be paid before a property can be sold with a clear title.

    Tax Liens

    The IRS can place a lien on your home to collect back taxes. If you are unable to pay the tax debt you may be forced to sell your home to pay your tax debt.

    Removing a Lien

    You must pay off the IRS debt before it will release the lien. Once you have paid your debt in full, you should receive a letter of satisfaction and receipt to prove that the lien is removed.

    Prevention

    It is easier to prevent a lien than to have a lien released from your property. Try to work out a payment plan with the IRS before they resort to filing a lien to get their money.

    Source:

    Federal Tax Lien Information

    What if there is a federal tax lien on your home?

    Home Lien Information

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