Roseville, CA Accountant for IRS Liens on Your Business
The Roseville accountants for IRS liens on your business at Cook CPA helps businesses remove a tax lien from their record and avoid penalties. Call today.
When a person or business fails to pay their taxes – whether they be property taxes, income taxes, gift taxes, or estate taxes – a tax lien may be placed on them. A tax lien can result in severe consequences, including damaged credit, property seizure, and wage garnishment. It may also impact bankruptcy proceedings and the maintenance of assets. Businesses that have had tax liens placed on them should seek help from an accountant with the Roseville accountants for IRS tax liens on your business at Cook CPA Group. Using extensive experience, the accountants at Cook CPA Group can help clients understand their tax liens, get them removed, and move on toward a brighter financial future.
Understanding Tax LiensA business or individual has a tax lien placed on them if they fail to pay their taxes. A lien is a public document stating that, because of your failure to pay taxes, the government has a legal right to your property. A tax lien alerts your other creditors to the fact that the government’s right to your property takes precedence over theirs. It is possible for a lien to occur at the local, state, or federal level. Tax liens should not be confused with tax levies. Tax levies differ from tax liens in that they involve the actual seizure of property. Tax liens, on the other hand, are a notice that the IRS could seize your property at any point in the future. The IRS gives people a chance to pay the taxes they owe before tax liens are placed on them. The process of receiving a tax lien begins when the IRS determines your tax liability. Then, the IRS will send you a Notice and Demand for Payment, which will be followed by a Notice of Federal Tax Lien. Tax liens can carry severe consequences for businesses. Liens can affect businesses in the following ways:
- Affecting business assets – Tax liens can be attached to business property and accounts receivable.
- Limiting loan opportunities – Tax liens are not included in credit reports, but the IRS can file a public notice of a tax lien, which creditors can access.
- Raising interest rates on loans
- Making it harder to refinance a home – Tax liens are attached to title searches, which means that you may have to use the equity on a home you own to pay your taxes before you can buy another home.
- Damaging job opportunities – Tax liens are present on public records, which can be searched by prospective employers. The presence of a tax lien may dissuade them from offering you a job.
- Losing your property – Seized property may be used to pay outstanding debt, a process also known as a tax levy.