Paying your taxes can be a real bummer, but it has to be done each and every year. Some people will be lucky enough to earn money on their taxes, but those who don’t will need to ensure the taxes are paid in full within the allotted period of time. If you fail to meet the deadline, you may be hit with a tax lien. This action will place a ruling over a piece of your property to ensure the taxes get paid. More details will be provided below.
How It Works
Once you’ve failed to pay your taxes, the IRS will use the tax lien form to put a lien on your real estate or personal property. When the lien has been put in play, your property will be held in limbo, until the taxes have been paid in full. If you fail to pay the taxes, the property in question will become property of the United States government.
Why Use It?
The tax lien plays a very important role in federal taxes. It helps to ensure that a specific citizen is forced to pay their dues. In the event that the taxes remain unpaid, the government will lose nothing, since they’ll be able to confiscate a piece of property to make up for the losses.