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Notice Of Federal Tax Lien

 

Liens give the IRS a legal claim to your property as security or payment for your tax debt. A Notice of Federal Tax Lien may be filed only after:

  • Tax liability is assessed;
  • You have been sent a Notice and Demand for Payment - a bill that tells you how much you owe in taxes; and
  • ou neglect or refuse to fully pay the debt within 10 days after you are notified by the IRS about it.

Once these requirements are met, a lien is created for the amount of your tax debt. By filing notice of this lien, your creditors are publicly notified that the IRS has a claim against all your property, including property you acquire after the lien is filed. This notice is used by courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate.

The lien attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivable, if you are a business).

Active tax liens may be listed on your credit reports. You may not be able to get a loan to buy a house or a car, get a new credit card, or sign a lease. Therefore it is important that you work to resolve your tax liability as quickly as possible, before lien filing becomes necessary. Refer to IRS Publication 1660, Collection Appeal Rights, for more information.

 

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1611 Wilmeth Road, Suite B

McKinney TX 75069

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©1997- RMCN Credit Services, Inc. All rights reserved. RMCN Credit Services, Inc does not provide tax, legal or financial advice. If you need any type of legal advice,
you must contact a licensed attorney. Comments about the possible and/or potential outcome of Client's matters are based upon experience and prior success in these matters.
RMCN does not guarantee the permanent removal of accurate and verifiable information. Client's active participation in providing RMCN all requested documents, forms,
and information including investigation results are essential for the accomplishment of an accurate credit report.Individual results may vary.