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.
A lien, by definition, is a creditor's right to take a debtor's property until that individual's debt is paid off or discharged. A lien can be issued for any form of debt, including federal income taxes. Massachusetts residents who find themselves behind on their tax payments may find the government swooping in to seize their property if they do not take the steps to address the situation as soon as possible.
It would probably be safe to say that no Massachusetts resident wants to owe money to the IRS. A person's life can quickly become difficult with all of the power the agency has to deal with past due taxes. For instance, a tax lien can easily keep people who owe back taxes from working toward a better financial position.
Fortunately, the easy answer to that question is no. The IRS will not immediately file a tax lien against an individual who cannot pay his or her taxes. Boston residents who cannot financially meet this obligation may find a way to avoid such liens as the collection process proceeds.
Imagine this: a while back, your business was having some cash flow problems and you got behind on your taxes. You weren’t able to make an offer in compromise or cover the taxes in the timeframe requested by the IRS, so they put a tax lien on your business assets. Fast forward to today, when you are trying to raise capital to grow your operation. Will that tax lien make it impossible to secure financing?
On tax day, an acquaintance shared via Facebook that she had received a letter from the IRS that included a significant tax bill. Federal tax debts can add up for a number of reasons and can follow you for a long time.
Tax day is quickly approaching. This year, you have a few extra days with the April 18 deadline.
A recent news headline suggested Ivanka Trump had been hit with a tax lien for non-payment of taxes. This was misleading.
Debt is not all created the same. Certain creditors - the IRS for example - have additional powers to collect past due balances. Failing to deal with a tax problem could mean the agency seizes your wages or even Social Security benefits.
We don’t often write about celebrity tax problems in this blog. And while you may not owe $2.5 million in back taxes, this story does illustrate the tools the IRS has at its disposal to collect.