When a person fails to pay their debt, the Internal Revenue Service (IRS) has every right to impose a tax lien. This is basically a legal claim against their property or assets. This can be a difficult situation for many, and getting out of this tight fix may prove to be almost insurmountable.
That being said, if you happen to find yourself in a similar situation, there is no need to panic. Below are a few tips that you may follow in order to deal with or get rid of your property’s tax lien.
1. Negotiate With the IRS
There are times when you may negotiate and arrive at a compromise with the IRS. In fact, many taxpayers can work out a payment plan, which will allow them to pay their outstanding tax bills within a specified time period.
2. Hire a Debt Negotiation Company
If you can’t do it alone, you may ask for help instead. There are some decent debt negotiation companies that are currently in business. These companies can negotiate for you and help you get rid of the tax debt that you owe the IRS.
3. File Your Taxes on Time
If your property is worth tens of thousands or even millions of dollars, you may be able to negotiate with the IRS and pay off your taxes in installments. This is possible if you already have some money required to pay off your entire tax bill.
Luckily, the IRS will not follow up on the taxes that you have already paid.
4. Make a Payment
If you are already facing a tax lien, chances are, the tax agency may have already placed a lien on your property. If you have a suitable property, you may sell it to pay off the taxes you owe.
This may not get rid of the lien entirely, but it will definitely take care of a significant portion of it.
5. File for Bankruptcy
If you cannot negotiate with the IRS or cannot sell your property to pay down your tax bill, filing for bankruptcy may be your best option. Again, this may not eliminate the tax lien as a whole, but it will significantly reduce the amount you owe the IRS.
6. File a Tax Extension
If you owe a lot of money, it may not be possible to pay it right away. You should file for a tax extension for a few months in situations like these.
If you do get an extension, the IRS will hold on to your money for a certain period of time. This will give you more chances to come up with a plan.
7. Consult a Tax Attorney
You may be able to get a tax attorney who can help you negotiate with the IRS. Remember that they have the power to waive taxes and penalties, which will make it easier for you to pay off your debt.
While it is true that you may have to pay a lot of money, owing taxes is still not a good situation. Unfortunately, some people are forced to deal with this problem without any idea of how to get out of it.
However, there are many different ways to deal with the problem. Take note of all our tips above and ensure that you manage your tax lien before the IRS takes further action against you.
If you are looking for an experienced company that offers tax relief solutions, look no further than our services here at Axiom Tax Resolution Group. We are your tax resolution services specialist, and we are always ready to find a permanent solution to your tax problems with the IRS. Call us today and let us discuss all your available options.