Federal Tax Liens Can Really Make Your Life Miserable!
When your taxes are not paid, the IRS establishes a lien against all of your assets, especially real estate. This gives the IRS the legal right to collect taxes from the sale of your assets, which includes just about everything you own.
The Extent of IRS Reach
The lien can be against you, your spouse, or your company. With a tax lien, everything you own is at risk of becoming the property of the United States Government. This includes:
- Real estate
- Personal property
- Financial assets
- Business assets
The Impact of IRS Liens on Your Life
Liens filed against you by the IRS also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don’t want the extra work when the IRS comes in to take your money.
With a Federal Tax lien on your record, you can’t get a reasonable loan to purchase a car. Think about paying 18-22% interest on a car that is already too expensive. You definitely cannot buy or sell any real estate. The list is endless.