For large tax debts, the IRS will often go to extreme measures to collect what it is owed. Two of the toughest tax penalties out there are tax liens and tax levies. Do you know what differentiates these two IRS penalties?
A tax lien is a claim put on your assets by the government. While you technically still control these assets, the government now holds a legal claim on that property. Having a lien attached to your name can also make it difficult to get credit or a bank loan. Plus, even if you file for bankruptcy, the tax debt and the lien may continue after the bankruptcy. In short, a lien can wreak havoc on your personal and business finances.
A tax levy, meanwhile, represents actual seizure of your assets by the government. You may lose your home, car, boat, bank account, or wages to cover your tax debt. Without these assets, you may quickly descend into further financial hardship.
In and around Austin, your best choice for tax resolution is Taxation Solutions, Inc. We have the knowledge and experience to provide superior tax help, petitioning to have liens and levies lifted and helping you negotiate alternative repayment strategies. Our ultimate goal is to help you become IRS compliant while also improving your financial situation.
Ready to learn more? We’re just a phone call away!