A Tax Lien from the IRS Can Damage Your Credit: Wall & Associates Explains
Commissioned News Story (Source: Wall & Associates)
A federal tax lien is a hold placed on one’s personal property when that person fails to make a tax payment. It’s a claim held against your property by the US government for neglecting to pay a tax debt.
A lien attaches to all of your assets, including property, securities, and vehicles, as well as to future assets acquired during the duration of the lien itself. After the IRS files a Notice of Federal Tax Lien, it can limit your ability to get credit. The lien also attaches to all business property and to rights to business property, including accounts receivable. If you file for bankruptcy, your tax debt and Notice of Federal Tax Lien may still continue after bankruptcy. This is all straight from the IRS.
Your credit score is bound to suffer, and as About Money puts it, “you may find yourself with less than ideal opportunities to obtain new credit or to refinance existing credit.”
The IRS won’t update the balance on your lien periodically, so don’t expect it to be updated on your credit report.
According to the tax consultants at Wall and Associates, Inc, which specializes in debt and tax resolution, “Often, taxpayers find themselves in a no-win situation where they have property against which they would like to borrow, however, due to the Federal Tax Lien, they cannot use it as collateral secure a loan.”
Obviously, Federal tax liens filed against you or your business are very serious matters. You are encouraged to seek professional help from experts like Wall and Associates, Inc. for back tax struggles instead of attempting to take on the complex situation on your own.
Not a solicitation for legal services.