Sometimes it’s so excruciating to learn that your loan application was disapproved because of a negative credit rating which had been settled several years ago. Ironically, paid-off negative items stay in your credit file and is allowed by law even after you’ve paid them.
Tax Attorney Help Ease Your Debt Problem
If you are in trouble with the IRS, then it is time to hire the services of a tax attorney to help ease your tax debt problem. If you do not do this in the earliest time possible, your property might face foreclosure and be sold through an auction. Winning bidders get the tax lien certificates of properties won via sale.
What are IRS Real Estate Auctions
In our previous articles, we had discussed and understood the mechanics of Tax Lien on real estates, which basically, involves two types. The tax lien certificates where a bidder/buyer bought the unpaid or delinquent taxes of a foreclosed property as investment. The other is the Tax Deed Sale where the winning bidder or buyer practically, bought and paid for the property itself by paying the delinquent taxes plus some penalties and value on the property imposed by the taxing authority. Basically, a bigger sum of money is needed in a Tax Deed sale.
The IRS and Its Tax Collection Powers
The IRS (Internal Revenue Service) is a powerful tax collection organization. Delinquent taxpayers would find themselves in tough situations due to the rough strategies utilized by the IRS to collect taxes. They have the power to levy wages, bank accounts, investments, and even place tax lien on properties.
Stay out of Tax Levy Way
Did you know that the IRS also has the power to enforce a tax levy on your earnings if you owe them money? They are going to send you a notice and demand for tax payment after determining the debt. After that, if still you do not make the payments, the IRS would send a final notice that is going to give you a 30 day grace period to resolve the back taxes. Do this before they would enforce a tax levy on your income. Again, if you fail to respond to the reminder of the IRS, the government is going to enforce the law in order to fulfill your debt.
IRS Back Taxes Collection Methods
Did you know that the Internal Revenue Service or IRS has several back taxes collection methods to get the money you owe to them? This is the reason why it is a must to make an IRS plan to save your assets from being seized by the government. Here they are:
Settle and Remove IRS Tax Lien
Is it wise to have the lien removed temporarily from your credit report? It may be one of the best ways to go if you cannot pay off the lien before the specified period. Also, if you do not have the time and leisure to set-up payments plan with the Internal Revenue Service. It is because this action is needed in order to refinance or sell your property. Then, the possibility of the tax lien lifted after it.
