The first major action the IRS will take is filing a tax lien. After a tax lien is filed, all your real estate and other properties will be put under the jurisdiction of the IRS. This is mainly done by IRS to show that they have claimed all rights to sell off or take over your properties if the taxes are a left unpaid. To increase the effectiveness, the IRS will file the tax lien in public records if the taxpayer neglects his taxes too much.
So how do you get the IRS of your back? Well, the best method is for you to clear your back taxes as soon as possible. After the payment has been made along with the penalty and interest, the IRS will release your lien in a time period of 30 days.
If you can’t pay the entirety of your debt in one go then the best option for you is to make the payments on an installment to release your lien. If you want to make an appeal to pay on an installment basis, you have to directly get in contact with IRS and establish an agreement.
After your agreement with the IRS is finalized, you can request for your lien to be released. But keep in mind that this is not a sure fire method and it can fail from time to time. If you plan to pay your tax installments using your bank account, the chances of your request being accepted are quite high.
You have to show the IRS how you’re going to pay your monthly installments from your salary. If the request is accepted, the amount of the monthly installment will be deducted from your bank account automatically every month. This guarantees that you are paying your taxes, and the IRS are more likely to release your lien. The tax collection will stop automatically when the debt has been cleared.
You can also opt to give a “bond” to the IRS that can guarantee your payment. The tax lien will be released if the bond is accepted. The guarantee can be either from a third party or a statement made by the bank. Selling off some of your assets to arrange the money or hiring a tax negotiator to help release your tax lien is also a good idea.
Although the fee for a tax negotiator may seem high initially, in the long term by reviewing your financial status and applying for the best tax settlement agreement methods, you will save you quite a lot of money. If not done soon, the penalties and interests will just keep on rising resulting in an unimaginable tax amount with which you will have no way of getting out of reducing.
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