Liens

Liens can be a significant source of frustration. They can prevent you from buying or selling a house and they ruin your credit. Luckily, there is much that can be done to ease the burden of, or completely eliminate it.

This is a type of debt that allows the one to whom you owe money to take your property if you do not pay off the debt as agreed. For example, a mortgage agreement creates a lien on a home in favor of the bank that lent the money. Notice of existence of this is generally filed along with the deed.

If you do not pay your monthly payment, the bank can take your home. This is commonly known as a foreclosure. Another common scenario might involve a car. If you finance a car, the financier can take the car if you do not pay your monthly payment. The existence of a car lien is usually notated on the title of the car.

It is within this context that we can understand the lien. This gives the Internal Revenue Service the right to take your property if you do not pay off the debt. It arises automatically (usually during or before an audit) and becomes a lien on all of your property as of the moment you fail to pay your tax bill when it is due or have unfiled returns.

However, the Internal Revenue Service will have difficulty taking your property unless they first file a document called a Notice of Federal Lien in the county in which you live. This Notice acts in the same manner as the notice of mortgage loan with the deed and the notation of the car loan on the title.

(learn more about innocent spouse relief) There are several ways a Dallas tax attorney at Margolies Law Office can help you with your Internal Revenue Service issues, many of which do not require you to pay off your debt.