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My House Has a Tax Lien – Now What?

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If you receive notice of a tax lien, it’s important to take action right away. A lien gives the government first priority in terms of getting paid should you ever sell your house. There are several things you can do to try and get the lien removed or to pay off the tax debt. Here is some insight on property tax liens and what they mean: 

What is a tax lien and what does it mean for you  

A tax lien is a legal claim the government places on your property in order to collect unpaid taxes. The lien will give the government first priority in terms of getting paid should you ever sell your house. Receiving notice of a tax lien can be frightening and overwhelming, but it’s important to take action as soon as possible. 

How to get a tax lien removed  

If you have received notice of a tax lien on your property, it is important to take action right away. There are a few things you can do to try to get the lien removed: 

  1. Pay off the tax debt. This is the best option, as it will remove the lien and prevent any further penalties or interest from accruing. 
  2. Request a hearing with the IRS. If you believe that you do not owe the taxes in question, you can request a hearing with the IRS to try to get the lien removed.  
  3. Enter into an installment agreement. If you are unable to pay off the debt in full, you may be able to negotiate an installment agreement with the IRS, which will allow you to make monthly payments. 
  4. File for bankruptcy protection. If you are unable to pay off your debt at all and the lien continues to cause you trouble, you may want to consider filing for bankruptcy protection. This can help you get a fresh start and remove the lien from your property. 

No matter what, it is important to seek legal advice as soon as possible if you have received a notice of a tax lien. An attorney can help you determine the best course of action and guide you through the process of getting the lien removed. 

How to pay off your tax debt  

The best way to pay off your tax debt is to contact the IRS and work out a payment plan. You may also be able to get the lien removed if you can show that you’re taking steps to pay off the debt. There are a few options for paying off your tax debt, including: 

  • Making a payment plan with the IRS 
  • Applying for an Offer in Compromise 
  • Paying with a credit card 
  • Getting a loan 

If you’re unable to pay off your tax debt, the IRS may take legal action against you. This could include seizure of your property or wage garnishment. It’s important to take action as soon as possible if you receive notice of a tax lien. This will give you the best chance of resolving your debt and protecting your property. 

What to do if you can’t pay your taxes 

If you can’t pay your taxes, there are a few things you can do: 

1. Talk to the IRS 
The first thing you should do is talk to the IRS. They may be able to work out a payment plan or other arrangement that will help you pay your taxes. 

2. File for an extension 
If you can’t pay your taxes by the due date, you may be able to get an extension. This will give you more time to pay without penalty or interest charges. 

3. Get professional help 
There are many companies and individuals who offer assistance with tax issues. They can often help you work out a payment plan, or provide other advice and assistance. 

4. Consider bankruptcy 
If you can’t pay your taxes and don’t see any other way out, you may want to consider filing for bankruptcy. This should be a last resort, as it will have a negative impact on your credit rating and financial situation. 

Alternatives to paying your taxes  

When you find yourself unable to pay your taxes, there are a few alternatives to consider. One option is to negotiate a payment plan with the IRS. This will allow you to make monthly payments toward your debt until it is fully paid off. If you are unable to make payments on a payment plan, you may be able to get an extension on your tax filing deadline. Another alternative is to request an offer in compromise from the IRS. This is when you offer to pay a portion of your tax debt in order to have the rest forgiven. The IRS will consider your financial situation and decide if this is an option for you.  

Conclusion 

When you receive notice of a tax lien, it can feel like the weight of the world is on your shoulders. But don’t worry, there are ways to get out from under this debt and start fresh. One option that many people choose is to sell their home. This can provide some relief from the financial burden of the tax lien and also help to improve your credit score. If you’re considering selling a home with a tax lien on it, contact us to get the best possible price. We can purchase your home quickly and for cash upfront so that you can move on from this stressful situation and live your best life. 

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