If you owe a large amount of taxes, then the IRS may file a lien against your assets. This means that the agency will get first dibs on any proceeds when you sell something, say a car or home. And unfortunately, a tax lien will generally damage your credit rating.
So what to do? Well, the good news is that there are strategies to help with the situation. So let’s take a look:
#1 – Appeal It
When it comes to the IRS collections process, you have many rights. For example, you are entitled to notices as well as sufficient time to resolve the matter. You can also appeal an action, such as a lien.
Actually, the process can be fairly simple, such as with a phone call. Although, if this does not work, you can request an official appeal. This is done by filing Form 9423.
Yet it’s important to keep in mind that the odds of prevailing are not particularly great. But if you have a compelling case – say that the filing of a lien would make it nearly impossible to pay back the IRS debt — then an appeal may be worth trying.
#2 – Eliminate The Tax Debt