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What does an irs lien mean?

April 26, 2017Finance forms income IRS lien liens mean procedures tax

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What does an irs lien mean?

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An IRS tax lien grants control of your property to the IRS, according to DebtHelp.com. A lien removes your rights to the property. Your creditors will be informed, and it may negatively impact your credit rating.RequirementsA lien may be instated only if the IRS has analyzed your tax situation and has demanded payment. If payment is not received within 10 days, a lien may be granted.Property SeizureIf your tax debt problem persists, the IRS may seize your property, according to Debt Help. If the equity in your assets (car, home, etc.) is equal to at least 20% of your debt, the IRS may take those items as payment.LevyIf the debt is not taken care of after a lien, the IRS may instate a levy. This allows the IRS to take money equal to your debt (or as close as possible) from your bank accounts.ReleaseIRS tax liens can be released if payment is received within 30 days of the lien’s initiation.