subject: What To Do If A Tax Lien Is Placed On Assets [print this page] The best plan of action is to pay off back taxes in a speedy manner. Once the Internal revenue service has gathered its money, the lien will automatically be lifted. However, if a person feels that the IRS is claiming more money than it is owed, finding legal help would most likely be the best course of action.
If someone cannot pay all of his or her back taxes at once, then figuring out a payment plan is the best plan of action. The IRS has forms on its website for taxpayers who need to figure out such an agreement. Those who set up such a plan should ensure it is realistic, as once the agreement has been set it cannot be altered and the money is automatically collected from one's account on a monthly basis.
Those who can work out a compromise agreement will discover that this system of getting rid of tax lien is even better than a payment plan. In a compromise agreement, the IRS will sacrifice much of the money it is due and allow a person to only pay a small portion of the money. However, this kind of an agreement is hard to attain. The Internal revenue service will not enter a compromise agreement with a person unless it has no hope of gathering the full amount of money it is owed. A controversy over the sum owed can also be the foundation for a compromise agreement.
Yet an additional choice is to sell off one or two assets that have a tax lien placed on them and then use this money to pay back the IRS. Once the assets are sold, the Internal revenue service will automatically take a chunk of the money. This is something that most people would rather avoid, but it is much easier than having to deal with a tax levy. With a tax levy, the IRS can forcibly sell all of someone's assets if they please. This is a situation that one will naturally want to avoid at all costs.
