${site.data.firmName}${SEMFirmNameAlt}
Call Us At:
301-637-8130

How a tax lien affects the taxpayer

If the IRS accuses you of failing to pay a tax debt, the agency may try to put a tax lien on your property. A lien can cause serious trouble, because it severely restricts your ability to use or transfer your assets, such as real estate or a small business, as you see fit.

Broadly speaking, the process works like this. The IRS assesses what it believes to be the taxpayer’s balance due and sends him or her a bill called a Notice and Demand for Payment. If the taxpayer does not respond or does not agree to pay the bill, the IRS can file a Notice of Federal Tax Lien. This document alerts the taxpayer’s creditors, if any, that the federal government is also making a claim on his or her property.

Once a tax lien is established, it attaches to all of your assets, including assets you have not yet acquired, but obtain while the lien is in place. It can affect your rights to your business’ accounts receivable, and limit your ability to obtain credit, potentially paralyzing your business. Note that a lien is different that a levy, which is a direct seizure of your property to pay off a tax bill.

Going up against the IRS by yourself can be very difficult, even if you are in the right. Having an experienced tax attorney representing you can even the playing field, giving you a fair chance to settle the dispute fairly, so you can move on with your life.

No Comments

Leave a comment
Comment Information

Contact the Tax Lawyers at Kundra & Associates

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get In Touch
  • Best Law Firms U.S. News 2014
  • Best Law Firms U.S. News 2015
  • Best Law Firms U.S. News 2016
  • Best Law Firms U.S. News 2017
  • fortune leading women in the law 2013 & 2014
  • Super Lawyer
  • Best Lawyers 2013, 2014,2015 and 2016
  • Global Law  Experts | 2016 | Annual Awards Winner

Rockville Office
110 North Washington Street
Suite 406
Rockville, MD 20850

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Washington, D.C. Office
1025 Connecticut Ave NW (By Appt only)
Suite 1000
Washington, DC 20036

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Kundra & Associates, PC
C/o Anmol Sekhir Consultants Pvt. Ltd. Chartered Accountants
3rd Floor, Sahakar Bazar
Opposite Railway Station
Bandra (West), Mumbai 400 050

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions