When Tax Debts Lead To Liens

: Chris Lee Law Firm

  Filed under: Tax Debt

irs tax lienUnpaid taxes are a serious problem that can often lead to more significant consequences by the IRS. While tax debts are not the biggest source of debt among Americans, they can be the most problematic if not resolved in a timely manner.

Unresolved Debts

The IRS is a creditor when it comes to collecting unpaid taxes. Unlike other creditors, the IRS holds moreĀ  power in implementing collection measures. Interest fees, wage garnishments, tax liens and bank levies are all penalties the IRS can apply to a debtor who has not resolved their tax debts.

In most cases, the IRS follows a system of collections that offers the taxpayer multiple chances to resolve tax debts. The debtor is likely to begin receiving notices of their tax debt and any deadlines for payment before penalty fees are applied. After this step, the IRS may garnish wages from the taxpayers paycheck or apply for a tax lien with the court. A tax lien will hold the taxpayer’s property as collateral for repayment of the debt. In some cases, taxpayer may even be sued in court for the collection of their debts.

Finding Resolution

Getting behind on paying debts is understandable in today’s tough economy, but ignoring debts or failing to make an effort to resolve them is quite another. The IRS offers taxpayers several ways to help get the debts resolved in a way that fits any budget. However, this takes cooperation and effort on the part of the taxpayer. Resolving tax debts is to the taxpayer’s advantage, in that once garnishment order and tax liens are applied they can be difficult to have removed.


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