Melbourne Tax Lien Lawyer

Melbourne Tax Lien Attorney

If you miss filing your tax return, you will likely receive notice of this nonpayment. If you do not address the debt and continue to let it accrue, you could end up facing other collection actions by state or federal tax agencies. One of these potential collection actions is a tax lien, where the government puts a legal claim on your property. It is important to find a Melbourne, FL tax lien lawyer if this happens and not to ignore the issue until you lose the property.

Helping Melbourne Taxpayers Address Tax Liens

Ignoring unpaid taxes will only make the situation worse. A tax lien can have numerous financial consequences on your life, including impacting your credit and making you a target for scams. Some taxpayers think they have no options because they cannot repay the tax debt. However, there are other ways to repay your debt over time or for a lesser amount. The experienced team at Tax Smith Tax Attorneys wants to help.

Our firm has decades of collective tax law experience. If you are dealing with back taxes or collection actions, we can help you negotiate with the tax agency and work to protect your property and other assets. We know how stressful and difficult this situation can be, and we want to provide you with the information you need to address your tax debt.

Tax agencies are willing to negotiate if you don’t have the financial means to pay back your debt. Ignoring the issue can have numerous consequences on your life and cost you the property you own.

What Does a Tax Lien Do?

The government will place a tax lien on the property as a way to claim it as collateral for unpaid debts. This property may be real estate, financial assets, or personal property. It is not the first step that an agency does for unpaid taxes, but it may occur if their attempts to contact and negotiate with you have failed.

When the IRS (Internal Revenue Service) places a lien on your property, it files a Notice of Federal Tax Lien. This makes it public information that the property is subject to governmental claim. Public and commercial creditors, as well as scammers, can see this.

When there is a lien on your property, you can’t sell or refinance it. If you continue to ignore the tax debt and the lien, the IRS or state agency could seize the property to cover your tax debt.

How Does a Tax Lien Impact Me?

Since tax liens do not have the immediate financial effect of a bank levy, some taxpayers are less concerned about a lien. However, a lien can have several negative effects on your financial ability. Prior to losing the property, a tax lien can impact your life in several ways:

• Assets. A lien attaches to all of your assets, including new assets that you acquire. You can lose the income from the sale of assets to the agency and have interference in the buying and selling of assets.
• Credit. Since creditors are aware of the governmental claim on your assets and the debt you owe, this can harm your credit score and prevent you from obtaining credit.
• Business. If you own a business, the lien will impact any property for the business. This can have a significant effect on your business’s reputation and ability to earn a profit.
• Employment. A tax lien can even prevent you from entering into certain fields of employment, such as those that require certain security clearances.
• Bankruptcy. If you file for bankruptcy, the tax debt and its lien can still follow you.
• Scams. Since the lien is public information, you are at a higher risk of being a target for scammers.

The more quickly you address your tax debt and take action to address it, the less a tax lien is likely to impact your life. Working with the right attorney can help you resolve the lien and your tax issues.

FAQs About Melbourne,FL Tax Lien Law

Q: What Is the Statute of Limitations on a Tax Lien in Florida?

A: The statute of limitations for a Florida tax lien is the time period in which the IRS can take action to collect back taxes through the lien. This may be between five and 20 years, depending on the type of tax lien. However, tax liens can also be renewed. When a tax lien is renewed, the initial statute of limitations no longer applies, and the state or federal agency can still collect taxes through the lien.

Q: How Do I Get Around a Tax Lien?

A: The ideal way to get around a tax lien is to pay off the full tax debt that you owe and which the lien is meant to cover. Having a tax attorney makes it easier to resolve the debt. You could qualify for an installment agreement, which gives you a longer time to repay the full debt. You may also be able to secure an offer in compromise, which enables you to settle the debt for a lower amount.

Q: Can You Settle a Tax Lien?

A: You could potentially settle a tax lien if you do not have the financial ability to pay off the debt in full that the lien has been put in place for. There are alternate options for repaying this debt, including penalty abatement or an offer in compromise. When you and the tax agency arrive at a resolution for your tax debt, the lien will be removed from your property after a certain period of time.

Q: Is Florida a Tax Lien or Tax Deed State?

A: Florida issues both tax liens and tax deeds. If a tax lien is for a debt that has not been paid, the property’s tax certificate can be sold at auction. After some time, the holder of the tax certificate can turn it in for a tax deed on the property. Before this happens, the taxpayer who owned the property can take steps to repay or negotiate their debt and have the lien on the property released.

Skilled Tax Attorneys in Melbourne

You do not have to address your tax debt and tax agency collection actions by yourself. If you can’t remove your tax lien by paying off your debt, the team at Tax Smith Tax Attorneys can help you review your other options. Contact our firm to see if we can find a solution.