Baker Law Firm, P.C.
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Federal Tax liens Q and A

No one loves taxes. Sometimes, they are a financial burden that some simply cannot afford to pay. Failing to pay can have serious consequences, however. In a previous post, this column addressed the purpose of tax liens -- a punishment for not paying taxes. This week, this column will answer some common questions that Connecticut residents may have about federal tax liens.

Question number one: How can I rid myself of a tax lien? There are four ways to remove a lien. One may pay all tax debt in full, seek a discharge of property, apply for a certificate of subordination or apply for a lien withdrawal. An experienced tax attorney can provide detailed information about each one of these options.

Question number two: Is it possible to avoid a lien? Yes. It is possible to avoid tax liens by paying taxes -- either in full or by setting up a payment plan with the IRS -- or settling tax debt.

Finally, question number three: Is a levy the same as a lien? No. These are two very different things. A lien is a legal notice that says the government gets first dibs on property and assets should a person fail to pay tax debt. A levy, on the other hand, is the actual seizure of one's property and assets.

Connecticut residents who may face tax liens can benefit themselves by taking swift action and attacking the problem head-on. Waiting to do anything can mean losing assets and damaging credit. A tax attorney can assist those who are struggling with tax debt in finding solutions that will help them avoid tax liens and their many accompanying consequences.

Source: irs.gov, "Understanding a Federal Tax Lien", Accessed on Nov. 29, 2017

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