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In case you have been zoning out or simply means too hectic to pay attention, we are smack-dab right in the middle of tax reason and the deadline to file is less than a month away (Monday, April 15, 2013).
During the previous few weeks, our inbox at Quizzle.com has actually been filling out with different concerns about tax liens. We did our research, eliminated all the complicated information, broke them down into streamlined answers– and laid them all out for you right below.
What’s a tax lien?
My handy-dandy Webster’s New World Dictionary describes a lien as a legal claim or hold on a person’s home for payment or fulfillment of a tax debt. In shorts, it’s a piece of info that tells the whole world you owe somebody some cash.
A tax lien is put on an individual’s home (personal or realty) because of a failure to pay earnings or other taxes connected with the property. For example: If you owe $3,000 in delinquent taxes and don’t pay up (because you forgot or simply failed to do so)– there’s a respectable chance you are getting slapped with a lien on your home.
How does a tax lien affect you?
Among various other things, a tax lien might restrict your ability to get credit (get a home, refinance, or open brand-new bank card).
Will a tax lien show up on my credit report?
You bet it will. A tax lien is a public record– implying it’s a piece of details that’s not thought about private. It’s information that’s gathered and reported frequently by county, state and federal courts.
There are three various kinds of public records that can appear on your Experian credit report in Quizzle: bankruptcy filings, tax liens, and judgments. And, since public records may reflect poorly on your credit score, it’s very important to inspect your report routinely to make sure details is up-to-date and proper.
Unpaid tax liens can remain on a credit report for 15 years (that’s longer than any other product in a credit report) and paid tax liens can remain on a credit report for a minimum of 7 years from the date they’re paid.
Not sure if you’ve a lien on your credit report? Learn today at Quizzle.com.
How can I get a tax lien removed?
Paying the tax debt completely is the very best way to obtain rid of a federal tax lien, according to the IRS. When the financial obligation is settled, the IRS will launch the lien within 30 days.
How can I avoid a tax lien?
The easiest tax lien question without a doubt, the answer is simple – pay your taxes on time and completely. If you owe and can’t pay the total check out securing some sort of possible payment choices – however whatever you do, don’t neglect it– it’s not visiting vanish on its own.