In some situations, when you make a purchase, you may need to think about what your purchase actually represents for your bank account. Are you in a situation to really make the purchase that you’re currently interested in? This is something you need to think about before you buy something you’re really interested in, especially if you’re going to make the purchase with credit.
Buying on credit allows you to essentially take out a short-term loan that you expect to pay off pretty quickly. If you end up accidentally putting yourself into too much debt—enough debt that you start falling behind on payments and you stop making other important payments like tax payments. If you’ve stopped making your tax payments for long enough, the IRS may issue a tax lien.
What Is a Tax Lien?
A tax lien is just an indication of intention that states that the United States has noticed that you’re shirking taxes and it desires for you to pay the taxes you owe, and until you do, it will make your life a little bit more difficult. It’s actually a legal claim against your property, and it essentially entitles the United States to take your legal possessions potentially. If you really never pay your taxes, the United States may take some important assets from you.
What Property Comes Under a Tax Lien?
A tax lien, as the United States can apply it, covers most of your property. It may even go over secondary properties. It’s just about the United States desiring a piece of property. These are a few of the pieces of property that you might have to fork over due to a tax lien:
- Real estate
- Personal property
- Financial assets
- Liquid assets
This covers basically everything, from properties that you literally live on to liquid assets like cash that you keep on hand. When a tax lien comes your way, you need to brace yourself, because the United States government can take just about whatever it wants.
What Impacts Can a Tax Lien Have?
A tax lien can have a variety of impacts on the person the lien is against. This is partially because a tax lien can seem a little bit intense to a lot of people. Here are four potential impacts of a tax lien:
- A bankruptcy case
- Embarrassment to creditors and lenders
- Public notices
- Potential for prison time
The best way to avoid a tax lien is to make sure that you don’t let it get to the extent where the IRS has to actively start taking your items. It can be frustrating, but paying your taxes definitely helps you stay on the “good side” of the IRS.
How Can Enformion Help You Learn About a Tax Lien?
When you do some research into just about anything, you start learning some very intriguing details. Enformion makes it possible for you to look up all sorts of information. Whether you’re interested in getting more information on someone else’s tax lien or you just want to make sure someone doesn’t have a tax lien against them, Enformion can help you gather the information you need to know about tax liens in general.