How Long Does a Tax Lien Last?

The tax lien is a legal issue put by the government against your property whenever you fail to pay your taxes. The term of a tax lien is by a number of variables which include the kind of lien and whether or not you can pay the debt off. This is what you should be aware of:



Duration of a Tax Lien

A tax lien may be in place for a number of years. The IRS will place a lien upon the property of your choice for up to 10 years. 10 years and it may last longer if certain requirements are fulfilled. When the lien is put in place in place, it grants the government the power to take possession of the property and to sell it in order in order to collect the tax debt.

How Tax Liens Expire

Tax liens usually expire when the time limit expires. In the case of a federal tax lien, the IRS is allowed 10 years after it assesses the lien to pay the tax owed. However, if the IRS prolongs its lien via an array of actions or if the taxpayer is being sued in bankruptcy and the lien is extended, it could be longer.

What Happens After the Lien Expires?

When the lien is due to expire, it means that the government has no longer a legal claim on your home. However, this does not mean that the debt will be paid off. The tax obligation, as well as penalties or interest, will remain due.

If you're faced with a tax lien, consult a tax expert. They will be able to guide you in how to deal with the problem and also ensure that the tax lien has been correctly dealt with. If you need assistance handling a tax lien, the LYTaxAdvisors will provide you with the needed help.

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