Federal Tax Liens can really make your life miserable! When your taxes are not paid
the IRS establishes a lien against all of your assets (especially real estate). This gives the IRS the legal right to
collect taxes from the sale of your assets, which includes just about everything you own.
The lien can be against you, your spouse, or your company. A lien against your company would seize your
accounts receivables. At this point everything you own is just one short step away from becoming the property of the
United States Government.
Liens filed against you by the IRS also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don't want the extra work when the IRS comes in to take your money.
With a Federal Tax Lien on your record you can't get a reasonable car loan. Think about paying 18-22% interest on a car that is already too expensive. You definitely cannot buy or sell any real estate. The list is endless.
Phil Condit, P.C.
2701 9th Ave S, Ste I
Fargo, ND, 58103 Phone: (701)237-6364 pcondit@pccpa.net
