Monday, February 8, 2016

What You Need to Know About Tax Lien

Taxes and Death are the two things permanent in this life. Although one can argue that you can taxes can be avoided, but this can only lead to complications later on, and that “complication” is known as the tax lien.

Defining Tax Lien

A tax lien is typically used by the IRS in order to ensure payment from an individual. It usually is imposed from the date of the assessment until whatever tax due there is has been settled. Since IRS informs credit bureaus about tax liens, having this on your record can have an impact on your credit score.

Tax Lien on Property

Tax lien happens not only on personal taxes but also on property taxes. In this case, a property with a tax lien, the property owner will most likely have a hard time putting it in the market. Keep in mind that a simple IRS tax lien search can be done with the help of the IRS Centralized Lien Unit. There are also a number of online legal databases that one can subscribe to in order to easily check if a property has an existing tax lien on it.

Certificate of Release

As frustrating a tax line may sound, it is not something that has to be a burden all your life. Once you have settled whatever tax due you need to pay, you can ask for a certificate of release from the IRS. You can make use of this certificate in order to clear up with credit bureaus any record of your tax lien.

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