- There is more than one kind of tax lien. Consensual liens are typically placed against a home mortgage. A statutory lien is used in conjunction with federal taxes. General liens cover all of your personal property. They can be issued the city, county, state or federal municipalities. Personal property liens are typically filed by the county in which the asset is registered, while liens issued due to back taxes from income are processed at a federal level.
- You will receive a notice in the mail from the IRS when a lien is in the process of being filed against your personal assets. In property tax suits, only the personal property with the lien placed against it may be confiscated, such as an automobile or recreational vehicle. However, federal tax liens give the IRS permission to seize any of your available assets and sell them at auction.
- Once you have received notice that the IRS is filing a lien against your property, you have 10 days to remit payment or establish acceptable payment arrangements with the appropriate processing division. If a lien is issued, it will remain on your property until the outstanding balance is paid.
- If a lien has been filed on your personal property and you are unable to pay the entire balance, then you still have some options left. However, you will need to contact the department that sent you the lien notice immediately. You may be able to work out a plan to pay the tax debt back in monthly installments. Taxpayers who can prove a serious financial hardship may qualify for a temporary suspension of their payment obligations, but this will not stop the accrual of interest and penalties.
- Experts like those at Premier Tax Solutions offer assistance to taxpayers who have been notified a lien is being issued against their property. Seek professional advice from a tax attorney or service as soon as you receive the lien notice if you are unable to pay the amount due.
