Tax Liens
State
Has a State Tax Authority filed a lien against you or your business? Are you not even sure what the heck a lien even is? You may not even know you have one, but a lien is always the first step that taxing authorities take to collect a debt. As soon as they know you owe them money, they’re going to file a lien. We can help you respond to a lien filing or determine your eligibility for a withdrawal, subordination, discharge or release.
Questions?
What is a state tax lien?
Just like the IRS, the States use tax liens to ensure they get paid. It is their basis for the State’s claim against the property of an individual or business. States will file a formal tax lien to make good on their claim against a taxpayer with a tax-related debt. Most Americans get familiar with liens when they apply for vehicle financing—the company that finances your purchase will put a lien on the vehicle so that you cannot sell it without paying them. A state tax lien operates similarly, except it applies to all of your property and ensures your current and future rights to that property cannot be sold without the lien holder (in this case, the State Tax Authority) being paid their interest through the sale.
How do I get rid of the lien?
Just like a vehicle with a lien, or a house with a mortgage, the simplest way to get rid of the lien is to pay off the balance in full. Liens are immediately in effect once a State Tax Authority makes demand for payment and the liability is not paid. While the IRS has many programs available to relieve taxpayers with liens, state liens are notoriously difficult to remove once in place. If you want to know what your options are, please reach out today and we can discuss what can be done about your state tax lien.
How does a lien affect me?
Once a lien becomes public record, it can be difficult to secure financing for you and/or your business. The lien will impact your ability to buy, sell, refinance or transfer real property. It will likely impact your credit score and therefore your ability to secure future credit. And, depending on your employment, liens can even prevent you from getting or keeping your job. Please contact us for assistance with your state tax lien today.