Finding Real Life Solutions To Your Tax Problem

What is a tax lien and why was it filed against me?

On Behalf of | Sep 5, 2014 | Tax Liens |

Tax problems are not limited to those who are struggling financially. This is illustrated by the tax problems the actress and singer Vanessa William, is facing. Late last month it was announced that the Internal Revenue Service filed a federal tax lien against her. It is seeking a total of $369,249.

One likely assumes that individuals facing tax liens are in that position because they do not have the money to make such payments. While there are of course situations where this is the case, other times it is simply the result of an oversight in paying what is owed. This often occurs where celebrities are concerned.

A Federal Tax Lien will not be filed until other warnings and requests are ignored. First, the IRS will determine what a taxpayer’s liability is. Next, a tax payer will be informed of how much he or she owed via a notice and demand for payment. If, after 10 days, a tax payer has not paid all that is owed, a tax lien may be filed.

Regardless of why someone received a notice of a tax lien, it needs to be taken seriously. Individuals who ignore them will find that they stay on their record for 10 years. Because they pertain to all of a tax payer’s property, it is in their best interest of rid themselves of the tax lien as quickly as possible.

The first step in this instance is to not only pay the tax but the penalties and interest that have accrued as well. Next, you need to post a bond that guarantees payment.

How William’s will address the tax lien filed against her is not clear. When someone has a question regarding a tax lien, or if the tax lien is incorrect, a lawyer who handles income tax issues could be of assistance.

Source: Forbes, “Vanessa Williams Slapped With Six Figure IRS Tax Lien,” Robert W. Wood, Aug. 29, 2014

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