IRS Lien Safeguards

In short, if you owe money to the IRS, the IRS may own you in only a few short steps.

Once you have an IRS tax lien filed against you, the difficulties are endless. The lien will show up on your credit report. Banks won’t want to deal with you because they don’t want the extra hassle of having to work with the IRS to take your money.

You won’t be able to get a loan for anything… not house, not car… and the revenue from anything you sell will be taken by the IRS until your lien is paid in full.

How long is the duration of a General Tax Lien?

Understanding the Duration of a General Tax Lien

A general tax lien, particularly one enforced by the IRS, is not permanent but has a specific lifespan. It begins when the IRS assesses a taxpayer, essentially marking the start of the lien. The duration extends until one of two events occurs: either the debt is paid off by the taxpayer, or the lien expires due to statutory limitations.

Key Points to Remember:

A general tax lien, particularly one enforced by the IRS, is not permanent but has a specific lifespan. It begins when the IRS assesses a taxpayer, essentially marking the start of the lien. The duration extends until one of two events occurs: either the debt is paid off by the taxpayer, or the lien expires due to statutory limitations.

• Initiation: The general tax lien activates once there is an official assessment.
• Termination: It remains until the tax liability is fulfilled or lapses after a certain time period, typically 10 years, as outlined by law.

By understanding these aspects, taxpayers can better manage and potentially resolve their tax liabilities before facing extensive legal or financial consequences.

When are Federal Tax Liens created and released?

Understanding Federal Tax Liens: Creation and Release