The real estate game can be exciting, but it is a game played at high stakes. Every year, more than $20 billion worth of real estate property taxes become delinquent in the United States!
At the end of the day, there is always a chance that you will end up dealing with a tax lien. So if this happens, what can you do about it?
Read on to learn all about what you can do if you end up having to deal with tax liens!
What Is a Tax Lien?
First off, it is important to clarify exactly what a federal tax lien is. When a property owner owes money to the government, the Internal Revenue Service may impose a tax lien on their property. This is meant to force a property owner to find a way to pay their taxes.
If the property owner still cannot pay taxes, then the government can exercise the tax lien. That means that they can buy the property before anybody else can. If they want to, they can even seize the property and sell it on their own.
All of this applies to state tax liens as well.
How to Get Help With a Tax Lien
There are a number of strategies that you can use on tax lien properties. Some of them you can execute on your own. Others require the help of expert professionals.
Tax law is famously complicated. That complication is a double-edged sword. It can be almost impossible to know what to do with a tax problem.
On the other hand, if you find a quality professional to help you out, that complexity means that there is a long list of possible ways to get around a tax lien.
Consulting tax experts is the most effective way to try to get around a tax lien.
On the other hand, you can avoid the consequences of a tax lien by simply paying the tax liability. Of course, in many cases, that is not practical.
You can also try discharging the lien, which will eliminate it. This will require you to persuade the IRS to accept your request for a discharge. You might have to pay part of your tax liability, but not all of it.
If you think you can pay off your tax liability, but cannot do so right away, then you can set up an installment agreement. You can pay off your liability piece by piece every month. You can authorize the IRS to withdraw money directly from your debit account to persuade them that this might be a good deal for them.
Manage Your Tax Liens as Well as Possible
We hope that you were able to take away something useful from this brief article on a few of the strategies that you can bring to bear when you are dealing with a tax lien. The legal system can be complicated, so it can be hard to know what to do with a tax lien.
The more you learn about them, the better prepared you will be to find the solution to your problem.
To learn more about tax liens and what you can do about them, feel free to reach out and get in touch with us here at any time!