If you owe the Internal Revenue Service (IRS) back taxes, act soon to avoid penalization. Because lately, the IRS is aggressively pursuing back taxes.
IRS tax collections and tax liens
According to the recent data revealed on www.irs.gov, the apex tax collection agency issued 356% more liens in 2010 compared to 2002. Actually, way back in 2002, the IRS issued less than 1.3 million tax liens against delinquent taxpayers. However, over the past decade, that figure has climbed to 3.6 million liens.
What are IRS tax liens?
Tax liens are legal notices sent by the IRS to delinquent taxpayers that puts a claim on their properties to satisfy tax dues; this mainly happens when taxpayers ignore or fall short of repaying their tax debts on time. Through these liens, the government safeguards its interest in all the properties like real estate, financial assets, and personal properties owned by the tax debtors.
How can I avoid a tax lien?
Being a taxpayer, you can stay away from the federal tax liens by merely filing and paying your annual tax returns on time. However, if you are struggling to repay your taxes, then there is no need to panic since the IRS has designed multiple options to help you manage your debts without burning bridges.
In case, you’ve been penalized with a tax lien, then do whatever you can but never try to ignore the notices from the IRS since doing so will just make it harder to resolve the problem.
What are the ways to avoid tax liens?
Often, individuals can amicably establish a payback plan with the IRS over the phone. However, if you owe more than $10,000, then you may need to work with a tax lawyer to negotiate a payment plan and avoid a tax lien.
An Offer-in-Compromise is the most common tax debt settlement method. For most taxpayers, it’s the only option, but it’s not a one-size-fits-all solution. You can also negotiate installment agreements, expiry settlements, amendments, innocent spouse relief, and Currently Not Collectible status.
Contact A Tax Law Attorney
Do you need help settling back tax debts? If so, get in touch today. Our tax law team has helped countless people escape their debt nightmares — and we’ll do everything in our power to do the same for you. Our tax law team is friendly, knowledgeable, and ready to help you in any way possible. Don’t worry, tax problems happen. We know how to resolve them and save you money in the process.Connect With A Tax Law Attorney Today »