Impact on Company
An IRS lien can be applied to your company’s real estate property, business bank accounts, and intellectual property—those you own at the time the lien is filed and any property obtained during the lien period. It also applies to all rights to business property, including current and future accounts receivable until the lien is removed—limiting your cash flow and possibly forcing your business to shut down.
IRS liens can hinder your ability to obtain credit in the future as it not only shows up on your commercial credit report but affects your business credit score as well. In fact, the longer it’s open, the more damage done to your credit. In some cases, the Federal Tax Lien will even survive the filing of a bankruptcy and show on your credit report for years after the bankruptcy has been discharged. Liens can inhibit companies trying to sell or refinance property, and impact cash flow by attaching to accounts receivable.
Removing a lien
The best way to remove a lien from your Denver-area business is to pay your debt in full. If that’s not an option, you can satisfy your lien through a monthly payment plan or Offer in Compromise or by establishing a hardship to show your company is unable to pay its debt. Other options include requesting a withdrawal of the lien, which removes the public notice of the debt but not the debt itself.
After you have paid your business taxes in full or satisfied your IRS lien in another way, the lien can remain on your commercial credit reports indefinitely—affecting your credit despite the resolution. You can request a letter from the IRS that shows your business has paid the lien in full, which you can then send to credit agencies to show the lien has been released.
True Resolve is ready to help.
It’s never wise to avoid your business’ tax issues. And you don’t need a tax attorney to help you resolve them. Contact the qualified tax advisors at True Resolve for help in satisfying your lien, so you can get back to your day-to-day business. Our Denver-based Enrolled Agents have the expertise and experience to work with the IRS on behalf of your company.
Call us to request help resolving your company’s back taxes or IRS lien.