What Can the IRS Put a Lien On: Here’s What to Know

As a taxpayer, an IRS lien is a circumstance that you would avoid having. Once left unattended, you can possibly lose your properties just to pay the tax you haven’t paid. If you have received an IRS lien, it’s important to know the basic information about it. That way, you can handle it properly without losing your assets.

Properties Included in IRS

Until the lien has been settled, all of your properties will be attached to the lien. So any property that you own, buy, or inherit will be included in it. This is the reason you must settle and pay the debt as much as possible.

Once you have a Federal Tax Lien, it would automatically attach to all of the property you own. However, not only will it attach to your physical properties, but it would also include all of your rights to a property. Here are some properties included in the IRS:

  • Executory Contracts – IRS considers executor contacts as part of a lien because the right under a contract, even if it isn’t fully executed, is still considered a “full right” due to the value attached to it.
  • Future Interests – The IRS lien will be attached to the taxpayer’s share of rights, no matter when the distributions are made. The lien wouldn’t be nullified even if the “right to property” is postponed.
  •  Contingent Interest – IRS can also include contingent interests. This means that they can claim the property and the property rights that the taxpayer can receive in the future, such as their living trust.
  • Joint Property – Liens can also be attached to shared properties. The IRS lien, though, will only be attached to the taxpayer with tax debt’s portion of the property. Because of the lien, the other person who has a share on the property can’t do anything on the property, such as selling it. Moreover, it can also sabotage the property’s value.
  • Other Properties – Liens can be attached to any property that a taxpayer can own, such as their cars, houses, personal assets, businesses, and more. Any physical property or asset you have is liable to lien.

Ways You Can Settle a Lien

The easiest and less stressful way of handling a lien is by paying the whole IRS debt all at once. The IRS can attach a lien to your current and future property, so you must take action on it if you’re planning to buy a property.

If you can’t pay the IRS debt fully, you can apply for any type of lien forgiveness option. There are a variety of choices, such as an Installment Agreement (IA), Offer in Compromise (OIC), or Currently Non-Collectible (CNC). If you can qualify for at least one of these options, you can nullify your lien.

You need to settle your lien immediately, especially if you own joint properties, because it can affect your family and the people included in it. Remember, joint properties are also subject to liens.

Summary

It is important to settle IRS liens immediately. If you keep neglecting it, it will follow you for decades, which will result in more penalties and interests. Take care of your tax debts and pay them as much as possible. Worst case scenario is you might lose your properties. It will also affect the people who are part of your joined properties.

Stop neglecting your IRS problems, and ask for help from tax professionals and specialists. Here at Axiom Tax Resolution Group, we have the best professionals that will guide you in applying for IRS debt forgiveness in Birmingham, AL. Get in touch with us today and let us help you with your tax problems.