Homeowners have options when dealing with tax liens

On Behalf of | Nov 27, 2019 | Tax Liens

When Connecticut residents do not or are unable to meet their tax obligations, the Internal Revenue Service is not going to take the matter lying down. Placing tax liens on homes is a way for the IRS to ensure it gets paid, eventually. When tax liens are put in place, homeowners may feel they have few options, but that simply is not true.

According to the IRS, there are a few ways to clear tax liens. First, it suggests paying one’s taxes in full — which is not an option for everyone. Second, if one has equity in the home, it suggests selling and using the proceeds to pay one’s tax debt. Third, if one has no equity but selling the house is necessary, one may sell and request the tax debt be discharged. Fourth, one can ask for the lien to be removed.

People incur tax debt for a number of reasons. The IRS is willing to work with individuals who truly lack the funds to meet their entire tax obligations upfront. Aside from the above-listed options, there are installment programs in place that allow homeowners to pay a certain amount monthly until the debt is satisfied. No matter how one addresses the situation, it is crucial to stay on top of the issue because the IRS may not be quick to remove the lien, even if the tax debt has been paid or discharged.

Tax liens can be a difficult thing to deal with. They are certainly something that Connecticut residents should not have to fight alone. An experienced tax law attorney can assist by reviewing specific case details and helping pursue a course of action that is believed to be most beneficial for the client.