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Thursday, 7 May 2015

Where Does a Tax Lien Get Reported To?

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A tax lien (TL) will become public and present in country clerks offices and is typically reported the three main credit bureaus therefore ending up on your credit which only causes more problems.
A tax lien is filed against an individual if they owe taxes. It is claim against your property by various forms of government. If you do not make an attempt to pay the money you owe there is a chance that the IRS, or State may move forward with this claim against your property.
A TL can come into play for not paying many types of tax including: income, property, and business. Contrary to popular belief, states, counties and cities utilize this type of enforcement. This includes the federal government, in the form of the IRS all the way down to the county and municipal levels. In other words, the IRS is not your only concern.
Most people know a bit about federal tax liens because they come direct from the IRS. State TLs are very similar. If you fail to pay personal or unemployment tax your state can place this type of claim on your property. The difference between State and Federal is that on the state level, multiple divisions of the government can enforce a lien.
When you fail to pay property taxes you will most often be faced with a county lien. The county can place it against both unsecured and secured property. This gives the county the ability to take over the property, if the owner does not act fast, or sell the lien to an investor.
A municipal tax lien is just as serious as those listed above. This process is usually used when a taxpayer fails to pay property taxes, utility taxes, etc. The municipal TL process has to do with the jurisdiction. Where you live may be entirely different than a neighboring municipality.
Keep this in mind: a lien due to taxes is serious no matter if it is federal, state, county, or municipal. This means that you owe tax money but have yet to pay it.
If you are faced with a tax lien you should contact the proper party to see how you can have it released. The easiest way to remove a TL is to pay your back taxes in one lump sum or through a payment plan. Working with tax professional firm is always a good idea because they can usually resolve the situation quickly.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ   
If you are looking to get self-help information on a tax lien release or you want to receive a free quote for professional help with a tax lien visit http://www.BackTaxesHelp.com today. Find useful self-help information and comprehensive guides to release a tax lien and improve your situation with taxing authorities.

Article Source: http://EzineArticles.com/3173272

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