IRS back taxes: Fight off the liens and get rid of your tax debts

tax paperwork

If the Internal Revenue Service (IRS) owes you back taxes, then you must act at once to get rid of them and avoid being penalized by the federal tax collector. For the IRS, of late, has been pursuing a lot aggressively to collect what it deems fit.

IRS tax collections and tax liens

According to the recent data revealed by the IRS on its official website,, it has been found that the apex tax collection agency has issued 356 percent more liens in 2010 as compared to 2002. Actually, way back in 2002, the IRS had issued not more than 1.3 million tax liens against delinquent taxpayers. However, since the past one decade that has reached to 3.6 million liens in the year 2010 alone.

What do you mean by IRS tax lien?

Tax liens are legal notice sent by the IRS to the delinquent taxpayers that puts a claim on their properties to satisfy their tax dues. This mainly happens when taxpayers ignore or fall short of repaying their tax debts on time. Through these liens the government safeguard’s its own interest in all the properties like real estate, financial assets and personal properties owned by the tax debtors.

What should taxpayers do to avoid being slapped with a tax lien?

Being a taxpayer, you can stay away from the federal tax liens by simply filing your annual tax returns on time and that too in full. 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 your 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 financial owes.

What are the ways to avoid tax liens?

You can get help from the IRS on back taxes and most of the time these issues can be resolved amicably over the telephone. Nevertheless, if you have over $10,000 as tax debt, then you may need to work with a professional to help you repay your debts and avoid being issued with a tax lien.

One of the most popular ways to settle back taxes is ‘Offer-in-Compromise’ or OIC. For most of the taxpayers like you, it’s the only option to pay off tax debts. However, this isn’t a one-size-fits-all solution.

For that reason, the IRS has got some more alternatives for you to review and take advantage of. They are Installment Agreement, expiry of IRS period to collect taxes, filing an amended past tax returns, Currently Not Collectible, bankruptcy and innocent spouse relief.