Avoiding Tax Liens

Avoiding Tax Liens

 

To avoid having a lien placed on your account, simply pay your taxes in full and on time. File and pay your taxes before the IRS has the opportunity to file a lien against you. Liens can drop your credit score by 35%, which is a serious drop, so it is best to avoid the possibility of having one placed on your credit in the first place. 

However, many people can’t pay their taxes right away or ontime. There are a few ways that you can avoid having a tax lien being placed on your credit score:

        • Do not ignore notices or letters from the IRS.
        • Keep track of your tax status and keep all paperwork.
        • Respond quickly to any notices.
        • Contact the IRS ASAP if you believe a tax lien was filed by mistake.
        • Arrange for an extension if you can not pay your taxes by April 15th.
        • Set up an installment agreement with the IRS if you can not pay your tax balance in full. As long as the IRS knows you will pay them, they will not file a lien, unless you don’t pay your scheduled payments ontime. 
        • Contact a professional tax attorney if you have questions or need help learning what options are best for you so that you avoid having a lien filed against you. 

The Tax Defense Group can help you with your taxes. If you owe the IRS, have received a notice of a tax lien or feel the lien that was filed against you is incorrect, our trained professionals will be happy to help resolve your situation. 

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