IRS Will Inform You Numerous Times Before a Tax Lien

About a month ago, we wrote a post about tax liens and why you will need legal help when one is filed against you. But let’s talk a little bit more about tax liens and why they can be so punishing for a taxpayer.

A tax lien will taint your reputation and record until it is cleared. The lien will inform financial institutions of your unfulfilled tax obligations with the IRS, and that means you really won’t be able to make any major financial moves while the lien is active. In fact, even some simple financial acts will be difficult for you to make while a lien is active.

How will you know that a line is active and on your record? Well, in the many months prior to having a lien placed on your record, the IRS will send you notifications of your obligation to the agency. If you don’t adequately handle your tax debt during these months, then the IRS will eventually send you one final notice that alerts you to the potential lien. If you don’t fulfill your tax obligations within 30 days of that notice, then a lien will be placed on your record.

If the lien is active, then you will need to do something about it. Refer to our post on the matter to effectively handle your lien.

As unfortunate as a tax lien may be, remember that there are always actions that you can take to address this important matter and free yourself from this financial prison.

Source: NASDAQ, “What You Should Know About Federal Tax Liens,” NerdWallet, Nov. 5, 2015