The IRS and other tax authorities wield significant power to collect money owed to them. Under state and federal laws, whether it’s your home, bank accounts, vehicles, retirement savings, or nearly any other type of asset you own, the “tax man” can and often does file a lien against your assets. A real estate lien acts like a mortgage but is imposed without your consent, thanks to legal provisions that provide certain creditors, particularly tax authorities, with considerable advantages. Anyone who owes taxes should expect to see a tax lien eventually. Tax liens must be resolved before you can sell or refinance your real estate.
Real estate is not the only asset affected by a tax lien. All property someone owns may be subject to a tax lien. Tax authorities usually impose a lien on all assets someone owns. Tax liens threaten most assets someone may own, such as their paycheck, vehicles, funds in their bank accounts, and retirement savings. Because the government is issuing these liens, the government can bypass state laws designed to protect your property. -regardless of state exemption laws. Under the US Constitution, federal law supersedes state law, meaning when these laws clash, federal law prevails.
Once the government files a tax lien, it can seize your assets to satisfy your tax debts. This lien covers the principal amount you owe for taxes, interest, and penalties. The interest and penalties often exceed the principal tax debt. The longer you delay payments, the greater the burden of interest and penalties will be.
Tax liens are issued frequently but are just as frequently ignored until assets are seized.
While the government typically adheres to legal procedures, errors can occur. If you ignore the debt and fail to arrange payment, the government may resort to seizing your property. Thus, receiving a tax lien is not just a minor inconvenience; it’s a pressing issue that often is an emergency.
However, there is hope. The law provides several avenues to resolve tax liens, and at A Fresh Start Law, we specialize in offering immediate solutions to help you navigate this daunting situation. Don’t let a tax lien control your life-reach out to us today and take the first step toward reclaiming your financial freedom.
