If an individual fails to pay his or her tax debt, and is facing an IRS audit, a federal lien may be filed against the individual's property. And property doesn't just mean one's home. It means virtually everything a person owns -- real estate, financial assets and even vehicles—is at risk.
Formerly, a Notice of Federal Tax Lien -- which alerts creditors that the government has a legal right to the property owned by the taxpayer -- could be filed by the IRS when the taxpayer's debt had reached $5,000. However, due to the IRS Fresh Start Initiative, the threshold for filing the Notice of Federal Tax Lien is now $10,000. And while the notice may still be filed at a lower amount, it isn't an automatic process as it was before.
According to a Huffington Post blog by Steve Rhode, the changing of the rules two years ago regarding when the lien can be filed has resulted in dramatically fewer filed liens. 32 percent fewer from 2011 to 2012, in fact. And that's a good thing for taxpayers, Rhode wrote, as having a Notice of Federal Tax Lien filed against you can result in a loss of an average 100 points from your credit score. A Notice of Federal Tax Lien is public record and in some cases, it can also reduce your ability to secure and maintain credit or even impact your ability to get a job.
If you are facing tax debt, there are other important components of the Fresh Start Initiative that may also help you, including the waiver of penalties in some cases, a streamlined process for making an Offer In Compromise, and new guidelines for Installment Agreements.
If you want to know if you qualify for assistance through the Fresh Start Initiative and begin working toward a solution for your tax debt, let Optima Tax Relief help you. Contact us today.Top of Form
Author:
Devin Finley is a freelance writer and tax relief expert. Devin writes on a multitude of financial and legal topics. He enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation. For more information Visit http://optimataxrelief.com/
No comments:
Post a Comment