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Can a business have a federal tax lien removed?

On Behalf of | Sep 15, 2020 | Tax Liens

Running a Massachusetts business means that a person has to pay attention to every cog turning to ensure operations run smoothly. Of course, without the right help, some entrepreneurs may miss something vital, including paying certain taxes. If this happens to a serious extent, some business owners could end up facing a federal tax lien against their personal or business property.

Before a lien is placed on property, the IRS will attempt to contact the taxpayer in order to notify the person about the delinquent tax bill and demand payment. If the bill is still not paid, the IRS will then send out a notice for the federal tax lien and alert creditors to the lien on the property. A lien can go on the credit report for a business and can cause a considerable drop in that score.

Business owners certainly do not want a lien on their property, whether personal or business. Fortunately, a lien can be removed, but it typically involves paying off the taxes that are owed and showing that all tax returns from the last three years are filed and otherwise compliant with necessary tax laws. The lien could be removed before paying off the balance in full if an agreement for a direct debit installment exists between the taxpayer and the IRS.

Seeking help at the first sign of tax trouble is typically the best option, but if a Massachusetts business owner receives notice of a federal tax lien, gaining information and assistance may be a top priority. Fortunately, tax attorneys can help concerned parties understand any documents and notices from the IRS and determine possible options. Handling a lien can seem intimidating, but it is possible to have one removed.


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