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Make a Deal to Pay Taxes or Face a Lien

Posted on Jan 06, 2011
One of the effects of a bad economy is people finding it harder to pay their taxes, whether real estate or income.  For the feds, pressured to get revenue to cover ever increasing spending, this has meant a more aggressive stance in the IRS' collection efforts that should put delinquent taxpayers on notice that they have to address their debt or face more serious consequences.  In an article today in The Huffington Post it was reported that "the IRS filed nearly 1.1 million liens in the budget year that ended in September, a 14% jump over the previous year."

These liens can really make it difficult for someone to get back on his or her feet when the economy recovers.  At the same time, filing the lien now rarely results in any recovery at all.  In defense of its actions, the IRS has stated that "liens are not filed until taxpayers are given numerous opportunities to pay their tax bills, or sign up for payment plans."  They go on to say that "the agency has taken steps to help taxpayers facing financial problems, including increased flexibility in installment agreements and other collection efforts."

What does this mean for you if you owe taxes?  Get in touch with the IRS as soon as possible to try and work something out.  Running from the problem will only make matters worse.  Although there is no guarantee that you will be successful in brokering an affordable deal with the tax man, the "head in the sand" approach is becoming more and more the wrong choice.

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Steven J. Richardson
Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.