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If you live in Ohio and owe taxes, a tax lien can be filed to collect the outstanding tax debt. Liens were created to give the government the right to claim your property if you don’t pay your taxes, When a tax lien is filed, it becomes public record, which means that credit reporting agencies can see it.
Find out more about tax liens and tax levies in the state of Ohio, how these can impact your credit, and what steps you can take to free yourself from tax debt and get a clean slate.
A tax lien is placed on an individual or a business when they don’t pay their owed taxes. This is done to protect the government’s claim to your property, ensuring it gets your money, property, or assets over other creditors.
A tax lien will remain on your credit report until the debt is repaid or the statute of limitations on the debt is up.
The IRS tax lien process is as follows:
Once the tax lien is processed, it will show up on your credit report. While the government doesn’t directly report tax liens to credit reporting agencies, these agencies actively seek tax liens and other public records to include on your report.
A tax lien, as well as other judgments or public records, can impact your ability to get credit cards, loans, or a mortgage in the future. It makes you look like a financial liability to a potential lender.
Unlike other types of collections accounts, tax liens aren’t required by law to be removed from your report after a specified period of time.
If you become aware of an Ohio state tax lien against you, you can take the following steps to resolve it:
A tax lien affects you in several ways:
The state of Ohio follows a specific process before filing a tax lien:
A tax levy is different than a tax lien. A tax lien means that the state tax authority has the right to seize your property if you don’t pay your back taxes, but at this point, you still have time to make arrangements. With a tax levy, the state forcibly seize your assets automatically. This may be in the form of wage garnishment, seizure of bank accounts, or collections against your assets. Like a lien, however, a levy will begin with a series of notices from the State of Ohio.
The state can choose from several different types of levies in its efforts to collect your outstanding tax debt. Here are a few examples:
You can prevent a tax levy in several ways:
If you’re having trouble with the Ohio state tax liens or levies, it’s best to consult an experienced and qualified tax attorney. Dealing with the state and getting tax liens removed can be a challenge, but a tax attorney can offer expert guidance and solutions to help the process go smoothly and ensure the best possible outcome for your case.
Fortunately, Solvable is here to help. We can get you in contact with expert tax attorneys and tax relief professionals who can find the best solution to your tax debt and help you get your tax liens withdrawn. Contact us today to see what we can do for you!