If the threat of a lien on your property has you worried about being tossed out of your home and your past tax bills are high and not within your means to pay, you may be having difficulty holding down your job or feeling comfortable enough to relax with your family at the end of each day. Tax problems burden many people in the United States and without knowledge about tax laws, people may wind up losing their assets. Consult with a tax attorney to learn how to break this cycle and make a formal repayment agreement.
1. Some Debts Are Forgivable
If you own your own business and your tax debt is associated with not filing more than one year or making an error on a return, a tax attorney will need to look over your paperwork, to determine how much you owe or whether or not a mistake can be corrected. Even if you are employed by someone else and don't earn a lot of money, failing to file your taxes or miscalculating how much you earned can have serious repercussions, especially since interest will be tacked onto a tax bill and result in you owing much more than you initially did.
A tax attorney can seek forgiveness of a tax debt or a portion of a debt. For example, if you currently owe several thousand dollars and interest rates are increasing at a steady rate, the attorney may be able to negotiate with an Internal Revenue Service agent and have much of the debt forgiven or your representative may be able to get a payment plan put in action, which would make you liable for the entire amount, but will give you some breathing room when paying back the debt.
2. The Lien May Be Dissolved
If the lien on your property is your main concern, show your attorney the paperwork that pertains to it and request guidance with handling this hold on your home and land. In many cases, a debtor can remain in their home, as long as payments are being made to reduce what is owed to the Internal Revenue Service.
In some situations, a lien can be dissolved, which would give you a clean slate and the opportunity to get back on top of your finances. Once your tax issues are behind you, make some changes in how you handle your finances. Save money throughout the year and use it to pay your tax bill or hire an accountant to assist with filing your taxes for you.