Protecting Your Assets

Protecting Your Assets

If you owe back taxes or have outstanding debt, the federal government can intercept your debt to creditors and place a hold on your property. The IRS can put a levy on your assets. This means you will no longer have possession of your things. They will belong to the government. A lien happens when the feds petition to have jurisdiction over your home, business, and valuable items. This is done in a public manner and there is no way of getting around it. It is basically the step before being thrown into jail for tax evasion. The federal tax lien gets assigned to your home, credit lines, car note agencies, and all other creditors you have borrowed from. What fundamentally happens is that tax officials protect the governments’ collection of your belongings over anyone else you may have borrowed from.

If the IRS reaches out to you by sending you a balance owed and you refuse or avoid payment in full in the issued time frame, you are at risk for receiving this attachment to your assets. It gets attached to your property and not you. This does not mean that the debtor is free to go. It means when you are ready to sell your house, automobile, boat, or any item of value the attachment is on, it will prevent you from doing that because it will be on your title report. When the debt is connected to the title, you will not be able to lend or borrow with your, or the governments assets.

This affects your credit and will stay on your report with all three major credit bureaus for a minimum of 15 years. Even though it only stays on your property for 10 years, it still stays on that for 5 years more. Paying the debt on time is the quickest way to avoid the attachment. When it is impossible to pay the debt by the issued date, get back to the IRS as soon as possible to settle your debt over the duration of a partial payment plan.

The government will work with you if the circumstances are in their and the payees best interest. The debtor can apply to release the assets altogether. This will allow it to be sold without the feds’ ownership. Also, there is an option to apply for subordination, and this allows other lenders to go in front of the IRS.

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Author writes about a variety of topics. If you would like more information about owe back taxes, visit http://resolutetaxservices.com/.

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