Connecticut residents who fail to pay their taxes may face some serious consequences. Tax liens, for example, may be initiated, which means the state or federal government can take control of one’s property. Tax liens will also be listed on one’s credit report, which can cause a number of long-term financial issues. ?
A tax lien is not something the government can just do. It generally comes with a warning well before it happens. This gives a person the opportunity to work something out with the IRS. If an individual ignores the warnings or fails to come up with agreeable payment terms with the IRS, a tax lien will likely be filed against his or her property. The government can either hold the property until one pays taxes, or the government can sell the property in order to collect the funds owed.
When a tax lien is put in place and reported to credit agencies, one’s score is likely to take a bit of a hit. A tax lien is considered as bad as bankruptcy or foreclosure. It can remain on one’s record for up to 15 years, making it really difficult from which to recover. There are only three ways to have a lien removed from one’s credit report: pay taxes in full and keep them current for three years, sign an installment agreement or prove that the lien was erroneously applied to one’s credit report.
Connecticut residents who have had tax liens initiated against them may not feel that they have many options, but that may not be the case. It may be possible to resolve the situation while avoiding the significant consequences associated with tax lien credit reporting. An experienced tax law attorney can review one’s case and offer information on all available options.
Source: thebalance.com, “How Tax Liens Appear On Your Credit Report“, LaToya Irby, Accessed on Jan. 4, 2018