Pensacola Tax Lien Lawyer

Pensacola Tax Lien Attorney

The Internal Revenue Service (IRS) has several collection actions available to recover unpaid taxes. One of these actions is a tax lien or a legal claim on your property. Because there are fewer immediate financial losses when a lien is placed, some taxpayers do not take them seriously. However, there are several financial and personal consequences to a tax lien, and a lien could even result in the loss of property. A Pensacola tax lien lawyer can help you address a lien.

Hire a Tax Lien Lawyer in Pensacola

TaxSmith, LLC, has decades of combined experience in tax codes, including both state and federal laws. We support business and individual taxpayers who have become overwhelmed by tax debt. Tax liens can significantly impact your life in several ways, including harming your financial interests, damaging your credit, and preventing you from buying or selling assets.

Our attorneys can help you address a tax lien promptly and explore options for pausing debt collection, entering into a payment plan, or potentially settling your debt for a reduced amount. We want to help you make informed financial decisions.

One option for addressing collection actions, such as tax liens, is to resolve your tax issues at the local Taxpayer Assistance Center. In Pensacola, this is located at 7180 9th Avenue North. You can discuss your case here. Our attorneys can help you prepare, or we can represent you and negotiate on your behalf.

The Basics of a Tax Lien in Pensacola

There are many ways that taxpayers can find themselves with significant tax debt that they don’t know how to address. One of the most common causes of tax penalties for individual income taxes is failure to pay, resulting in 22.4 million penalties assessed out of a total of 43.5 million assessed penalties. When penalties are left unaddressed, they can accrue, along with interest.

When you have significant unpaid taxes, the IRS or state tax agency may take action to recover those taxes. In the fiscal year 2024, the IRS sent 196,996 notices of federal tax liens filed, compared to 179,019 in 2023. A tax lien is not the IRS’s first step to recover unpaid taxes, but it may be used if you do not respond to notice of unpaid taxes and requests for payment.

A lien is the IRS’s claim on your property. The lien may be placed on your home, vehicle, real estate, or other property. You will be unable to sell the property or refinance it, as the IRS has claimed it as collateral if you do not pay your debts. If you continue to ignore the debt and the lien, the IRS may eventually implement a levy and seize the property. If you are facing a lien on your property, it is crucial that you take action to address your tax debt.

Why Should I Work With an Attorney to Address a Tax Lien?

Tax lien cases can be stressful, and the most effective way to prevent the negative consequences of a tax lien is to pay off your entire tax debt. Unfortunately, many taxpayers who face a tax lien are in this situation because they cannot afford their tax liability.

When you hire a tax lien lawyer, they can help you review your other options to resolve your debt. The IRS is open to compromising when you cannot pay your debt. An attorney can look at your financial situation, determine what you qualify for, and help you negotiate your debt with the IRS. This may include setting up a payment plan, requesting penalty abatement, or even securing an offer in compromise.

You should never ignore a tax lien. Although it may seem less serious than other types of collection actions, it can have a significant impact on your life, harming your credit and finances. The IRS can also engage in additional collections, such as a bank levy or wage garnishment, in addition to the lien. Addressing your tax debt with the help of an attorney can help you secure the most beneficial outcome and avoid other collection actions.

FAQs About Pensacola Tax Lien Law

How Much Is a Tax Lien Attorney in Florida?

The cost of a tax lien attorney in Florida depends on many factors. The average cost of a tax lawyer in Florida is $389 per hour, but each attorney’s rate varies based on their location, experience, and the firm’s policies. Other factors that influence fees include the complexity of your specific case. Generally, addressing a tax lien will be charged hourly. You should always discuss fees upfront with a potential attorney.

How Does a Tax Lien Sale Work in Florida?

A tax lien sale in Florida is how your lien and the property it is attached to will be sold if you do not take action to address your debt. The lien is sold at a public tax deed sale, and this is how the tax agency recovers some of the owed tax liability. However, the owner of the tax lien cannot apply for the tax deed for at least two years in Florida.

What Is the Disadvantage of a Tax Lien?

There are several disadvantages of a tax lien when it is placed on your property. It can harm your credit score and make it harder or impossible for you to secure credit. You will be limited in your ability to buy and sell assets. It can restrict you from certain types of employment, result in the loss of profits or income, and impact your professional reputation. Because the tax lien is public information, it also increases your risk of scams.

Can You Avoid a Tax Lien in Florida?

The most effective way to avoid the effects of a tax lien in Florida is to pay off the tax debt you owe in full. Once your payment is processed, the tax agency will remove the lien. Unfortunately, many taxpayers are in this situation because they cannot pay their full tax debt. You can instead work with the tax agency to negotiate your debt if you enter into a payment plan or other settlement option, which could pause collection actions.

Contact TaxSmith, LLC

You don’t have to deal with the IRS and a tax lien by yourself. Working with an attorney can save you money in the long term and even help you get a fresh start with the tax agency. At TaxSmith, LLC, we can help you act quickly if you are facing IRS collection actions. Contact our firm today.