Roseville, CA Accountant for IRS Liens on Your Business
Cook CPA Group
When a person or business fails to pay their taxes – whether they be property taxes, income taxes, gift taxes, or estate taxes – a tax lien may be placed on them. A tax lien can result in severe consequences, including damaged credit, property seizure, and wage garnishment. It may also impact bankruptcy proceedings and the maintenance of assets.
Businesses that have had tax liens placed on them should seek help from an accountant with the Roseville accountants for IRS tax liens on your business at Cook CPA Group. Using extensive experience, the accountants at Cook CPA Group can help clients understand their tax liens, get them removed, and move on toward a brighter financial future. Business owners that are dealing with tax liens should contact Cook CPA Group as soon as possible by calling (916) 432-2218.
Understanding Tax Liens
A business or individual has a tax lien placed on them if they fail to pay their taxes. A lien is a public document stating that, because of your failure to pay taxes, the government has a legal right to your property. A tax lien alerts your other creditors to the fact that the government’s right to your property takes precedence over theirs. It is possible for a lien to occur at the local, state, or federal level.
Tax liens should not be confused with tax levies. Tax levies differ from tax liens in that they involve the actual seizure of property. Tax liens, on the other hand, are a notice that the IRS could seize your property at any point in the future.
The IRS gives people a chance to pay the taxes they owe before tax liens are placed on them. The process of receiving a tax lien begins when the IRS determines your tax liability. Then, the IRS will send you a Notice and Demand for Payment, which will be followed by a Notice of Federal Tax Lien.
Tax liens can carry severe consequences for businesses. Liens can affect businesses in the following ways:
- Affecting business assets – Tax liens can be attached to business property and accounts receivable.
- Limiting loan opportunities – Tax liens are not included in credit reports, but the IRS can file a public notice of a tax lien, which creditors can access.
- Raising interest rates on loans
- Making it harder to refinance a home – Tax liens are attached to title searches, which means that you may have to use the equity on a home you own to pay your taxes before you can buy another home.
- Damaging job opportunities – Tax liens are present on public records, which can be searched by prospective employers. The presence of a tax lien may dissuade them from offering you a job.
- Losing your property – Seized property may be used to pay outstanding debt, a process also known as a tax levy.
How to Avoid a Tax Lien on Your Business
The easiest way to avoid a tax lien in Roseville, California is to pay the taxes you owe in full. However, this may not always be possible. If you owe taxes but are unable to pay them in full, you can avoid a lien by entering into a guaranteed installment agreement. (This is only a possibility if you owe less than $10,000 in taxes.) If you owe between $10,000 and $25,000 in taxes, you can enter into a streamlined installment agreement, which can prevent the issuance of a tax lien.
In both a guaranteed installment agreement and a streamlined installment agreement, you agree to pay your entire tax balance in full through monthly installments. Another option available to people that are facing tax liens is an Offer in Compromise, which allows individuals to settle their tax obligations with the IRS for an amount that is less than the total that they owe.
Removing a Tax Lien in Roseville, California
Tax liens are not permanent. There are simple ways of having a lien removed from your record, especially if you use the help of a Roseville accountant.
One way to remove a tax lien from your record is to pay the amount that you owe in full, especially if you failed to pay your taxes due to negligence and not a lack of funds. Another way to have a tax lien removed from your record is to enroll in a payment plan. You may be able to have the tax lien removed from your record if you allow the IRS to take payments directly out of your bank account. In some cases, you may be able to enter into an Offer in Compromise instead.
In certain cases, you can have a tax lien removed by filing an appeal. You can do so by requesting a due process hearing from the IRS. You are able to request a conference with any IRS employee that has made a decision about your case. It is also possible to have a tax lien removed from your record if it becomes unenforceable. After 10 years, a tax lien passes a statute of limitations and expires. Finally, it is possible to have a tax lien removed from your record if you declare bankruptcy.
Tax Lien Accountants Serving Roseville, CA
You can avoid a tax lien by paying your taxes on time and in full. However, if you fail to do so and end up receiving a tax lien, you can have it removed with the help of an accountant from Roseville accounting firm Cook CPA Group. Contact them at your earliest convenience to learn more about how you can have a lien removed from your record. Get in touch with Cook CPA Group by calling (916) 432-2218 today.