A lien refers to a legal claim on a specific piece of property and it until the amount owed is paid off, whereas a lienholder is an individual or organization that makes a claim. In most cases, you may receive a lien in the form of a letter from the IRS or State Franchise Tax Board.
How a Lien Exactly Works
The parties involved can file a suit concerning any outstanding taxes due but, mostly, liens function as collateral in real situations where an individual cannot fulfill or meet their tax obligations.
Let us find out more about how the lien works and how you can eliminate it:
How to Get Rid of a Lien
In short, paying back the total owed is still the best route to eliminate a tax lien. You will need to get a lien release statement that absolves your property and wages from any threat. After that, the statement is signed by the parties to ensure proof of payment and avoid possible judgment against it in the foreseeable future.
Generally, you can get rid of liens only through an individual or entity responsible for it in the first place. Here is how you can get rid of your IRS or State lien with certain exceptions:
1. Pay Off the Amount Owed
Essentially, when it comes to a tax lien, you will have to pay off your amount owed to release from the shackles of your lien. Sometimes this may not be an option, however. Whenever you don’t have the means to pay off your balance due to financial hardship, the experts at GetATaxLawyer.com can find an alternative solution.
2. Obtain a Settlement
Your next option to get rid of your lien is to initiate basic negotiation with the IRS or State. Taking on the government alone can be scary and difficult though. You will need to convince them that you do not have sufficient funds to pay the amount you owe. There are many options for how you can significantly reduce your overall total.
3. Dispute the Lien
If you disagree with the IRS or State Franchise Tax Board, it may make it harder to settle your lien. You can file a lawsuit against the lienholder for the release of the lien. However, many people end up drowning in paperwork and suffering from many headaches trying to do this on their own. Get relief fast with a tax lawyer on your side.
Get Tax Relief Today
While you could try the aforementioned options, it’s more effective to hire a tax professional to take on the IRS or State on your behalf. No one understands the tax processes and laws better than the professional lawyers at GetATaxLawyer.com. Call 1-800-290-8160 for your FREE consultation today.