Generally, if you haven’t paid your federal, state, or local taxes at all or haven’t paid your state or federal taxes in full, you may begin to receive notices warning that a tax lien may be filed against your assets. If a governmental entity files a lien, then it has the first claim to your property, which can include intangible assets such as your bank account, personal property such as your car, or real estate such as your home. This is a serious situation. Avoid risk to your assets by getting tax lien help in Indiana from an experienced Indiana tax attorney.
When Do You Need Tax Lien Help in Indiana?
A federal tax lien arises automatically if you have unpaid taxes more than ten days after the IRS has sent a demand notice for taxes owed. If you have received a demand notice from Indiana or a local taxing authority, you are at risk of having a tax lien filed against your assets by the state or local taxing authority. The lienholder governmental entity can collect the tax debt in one of these ways:
- Selling your property at auction;
- Garnishing your wages; or
- Levying against your bank account.
To understand how to resolve tax liens, the consequences of tax liens outside of the risk to your property, and how an Indiana tax lien attorney can help, read on.
Negotiating Release or Subordination of Tax Liens
If immediately paying your delinquent taxes and any accrued interest or penalties is not feasible, you may try to negotiate a settlement with the taxing authority. For example, if you are a property owner with a federal tax lien, you have the option of paying off your tax debts or negotiating a discharge or subordination. A discharge releases the lien altogether, while a subordination keeps the lien but allows another lienholder to have priority. A subordination is helpful if you’re refinancing your property.
Some taxing authorities might be willing to negotiate a payment plan for your delinquent taxes. Knowing how to negotiate a workable payment plan requires an understanding of the taxing authority’s legal position and the lien process as a whole. If this all sounds complicated, that’s because it is. An Indiana tax lien lawyer can provide knowledgeable tax lien help in Indiana or local lien situations as well as with federal liens.
The Impacts of Tax Liens
Tax liens can affect more than just your rights to your property. Other consequences can include garnishment of your wages or seizing your business’s accounts receivable.
For an individual, the effects can be long-lasting. Before April 16, 2018, tax liens were included in credit reports, which could negatively impact your credit score. Although the three major credit reporting companies no longer include tax liens in credit reports, liens can still appear on consumer credit reports, which could affect your ability to buy a home or other financed asset. Liens can also appear on business credit reports, which could have a negative effect if you are a business owner.
In addition, keep in mind that liens are public records, so anyone can see them. If you have a tax lien filed against you and are seeking a loan, lenders will be less likely to approve the loan because the government is now first in line to obtain any collateral. That’s why it is a good idea for Hoosier tax debtors to seek tax lien help in Indiana to resolve the situation as quickly as possible.
Find an Experienced Tax Lien Lawyer at Camden & Meridew PC
If you have received a notice of a federal, state, or local state tax lien, you feel that a lien has been filed against you in error, or you would like to resolve a lien filed against you, call Camden & Meridew PC for tax lien help in Indiana. Julie A. Camden is an experienced Indiana tax lien attorney who provides meaningful and effective guidance based on her years of experience as a tax lawyer. If you need tax lien help in Indiana or help with other tax matters, call Julie A. Camden at 317-770-0000 or complete the firm’s online contact form.