4 Ways You Can Avoid a Tax Lien

If you get behind in your taxes, the IRS put a tax lien on some or all of your assets. If you work with an accountant that is referred through the United CPA Association, you can avoid a lot of IRS headaches. However, here are four easy ways to avoid being slapped with a tax lien.

Always Pay in Full

The best way to avoid a lien is to pay what you owe in full. You can make payments from your debit card or bank accounts, as well as through check, money order, payment in person, or the Electronic Federal Tax Payment System.

Establish a Payment Plan

Rather than pay in full, you can pay on an installment agreement if you owe less than $10,000. The monthly payment amount and length of the plan depends on how much you owe. A Streamlines Installment Agreement is used for balances between $10k and $25k.

Pay Down the Balance

If you owe more than $25,000 you must pay the balance down to under that amount to avoid a lien. Once below that threshold, you can enter a payment plan.

Settle Your Obligation

If you can’t afford the whole debt, filing an Offer in Compromise can help. This may be a way to settle the debt with the IRS for less than is owed.
Don’t let your tax payments go unpaid or resolved. There are many ways you can avoid being penalized with a tax lien.
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