A tax lien is a claim used as security towards or payment for taxes owed. The filing of a tax lien serves as a public notice to your creditors that the taxing agency has a claim on property that is in your name, including properties acquired after the lien is filed. Such property can include your house, car, and bank accounts.
A tax lien may be withdrawn or released under certain circumstances including:
- Full payment of all taxes owed, including interest and additional fees.
- Acceptance of an offer and compromise and full payment of the offer amount.
- Withdrawal allows for faster collection.
- Best interests of both the government and taxpayer.
- The taxpayer was not given the appropriate opportunity to dispute the assessed liability.
Your credit rating may be impacted when a tax lien is filed. To limit the damage to your credit rating and protect your assets, resolve your tax lien problems as soon as possible.
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