what is a tax lien?????

Question

what is a tax lien and how does it work? what exactly can they do?

Answer 1

I'll try to explain it easier:

1. Tax liens are placed on a property if the owner doesn't pay his taxes on time. They are charged an interest rate every month until it is paid off.

2. Property taxes pay for schools, roads, etc. The county needs to get the money somehow even though the owner is not paying.

3. Counties will hold an annual tax lien sale and offer investors not only the original money they invested but all of the interest and penalties that the delinquent taxpayer

accumulates. In Florida, the interest rate is 18% annually, in Arizona it is 16%, etc.

4. Because of the high rate of return, banks, companies, and individuals participate in these tax lien sales every year like clockwork.

5. You can contact your local county officials for tax lien sales. Some are even done online. You can find out more about tax lien schedules on

http://www.investingwithoutlosing.com

... -- which is where most people go to in order to get information on upcoming auctions.

6. There are numerous strategies you can apply in tax lien sales since there's a variety of ways different counties hold them. Some use a bid down method, sealed envelope, etc. It is

best to buy a simple guide book from Amazon or Barnes&Noble on this. My favorite book on the subject is: Complete Guide to Real Estate Tax Liens and Foreclosure
Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa

7. Sample problems if you don't have a guide book: (a) You could buy a tax lien on a ditch and your money is wasted. (b) You may have an owner that has bankruptcy or IRS liens and

your money is wasted.

Answer 2

A tax lien is taken when you do not pay some or all of your property tax. They can auction the property out from under you in many states, or force you to pay when you sell the property. IRS can do this if you do not pay your income tax, as can state tax for income or sales tax you have not paid. If you pay the tax the lien may still be on for court coast and interest; before you pay it off be sure how much the total bill is and pay the whole thing off if poss-able or make arrangements to pay it off!.

Answer 3

Are you announcing that each and every 12 months you gave the accountant your entire information, he/she gave you a accomplished go back and also you signed it and gave it again to him/her so that you had cause to suppose it was once sorted, then it was once by no means filed? Unless you got here out precisely even financially each and every of the ones years, which could be just about unimaginable, how could you now not have spotted that both your investigate to the IRS wasn't cashed, in any other case you did not get your refund, for all the ones years? Sounds like you are frequently going to have a few critical explaining to do, for a way you did not recognize and it was once the entire accountant's fault. And the IRS makes more than one contacts to the taxpayer earlier than they hindrance a lien - did you by no means get something there both? Steps to proper this: touch a tax lawyer and exhibit him/her the entire forms that you've got. Let the lawyer touch the IRS. Be all set to pay any again taxes and consequences, moreover of direction to the lawyer's charges. If you do all this speedily, might be your residence would possibly not get offered. If the sale is scheduled for subsequent week, do the entire above plus name a relocating manufacturer. Sorry, appears like there is a few know-how lacking right here.

Answer 4

it means you owed taxes and did not pay for them in the time alloted. If it is a state tax lien and you live in the state they can take everything from you that is of worth. If you don't live in the state when they issue the lien, they can't really touch you until you go back in that state. If it is a federal tax lien they can take everything from you that is worth regardless of the state that you live in. Tax liens also go on your credit report. Buttom line is pay what you owe and move on with your life do not try to avoid it, remember you can go to jail.

Answer 5

A tax lien warns any potential buyer of your property that the government has a claim to your property for unpaid taxes. It also puts you on notice that the government will exercise their rights if you attempt to sell the property and will take any proceeds from its sale. In the worst case, the government could force a tax sale and use the proceeds to pay off or pay down your debt.

Answer 6

A tax lien is generally placed on real property. It tells potential buyers that there is money owed. They can force the sale of the property to recoup the back taxes owed.

Answer 7

IRS can take your payroll check, Assets, come to your home. It must be in writing. You need to communicate with them a make a payment of some kind. Do not ignore this.