A Federal Tax Lien or State Tax Lien gives the IRS, California Franchise Tax Board or the applicable State Department of Taxation a legal claim to any property as security or payment for overdue tax debt. By filing a Notice of Federal Tax Lien (NFTL), creditors are publicly notified that the IRS or state have a claim against a taxpayer’s property, including property acquired after the tax lien is filed. This tax lien is attached to any owned property (like homes or cars); for businesses, the lien is attached to accounts receivables. A NFTL is also used by courts to establish payment priority in situations like bankruptcy or real estate sales.
Consequences of a tax lien:
- It harms your credit rating (which will affect your ability to buy a home, a car or even rent an apartment).
- It can be reviewed by employers (through your credit report).
- It can make the sale of your home or car very difficult (or impossible).
Because of the damaging repercussions of a tax lien, it is important to resolve a NFTL immediately.
Stop your tax lien before the damage is done. Call Direct Tax Relief today at (800) 505-4134 for your FREE Tax Resolution Analysis.