The IRS possesses significant enforcement capabilities to collect unpaid taxes, from garnishing wages to seizing your bank accounts. However, one of their most potent weapons, the tax lien, is often misunderstood and has the potential to impact your life for years to come. Fortunately, a skilled tax attorney can find a solution when the IRS or state tax agencies file a tax lien on your assets.

What Is a Tax Lien?

When a taxpayer, including businesses and individuals, fall behind on their taxes, the government can make a claim on your property in the form of a lien. While IRS agents usually will not appear in person to begin seizing your assets, the lien gives them priority over other creditors, which can make it difficult to buy a car, finance a home, or even rent an apartment. This derogatory item will stay on your credit report for as long as you owe the debt or until the 10-year statute of limitations expires.

How a Tax Attorney Can Help

Skilled tax attorneys who understand the code can explain your situation to you and guide you through the process of resolving your unpaid taxes. In many cases, they can negotiate a settlement for less than you owe, allowing you to clear the lien, along with any other tax-related problems you have. If the credit bureaus continue to show the lien on your credit report after the debt is paid, your lawyer may attempt to dispute the item and have it removed, which will significantly improve your score.

Allen N. Davey, LLC Attorney At Law CPA has provided Honolulu residents with a comprehensive range of tax services and objective advice for over 30 years. Visit him online to learn more about his client-centered approach, or call (808) 545-2222 for a consultation with an established tax attorney today.