Today's Tax Minute

The radio program "Tax Minute" can be heard every weekday morning at 6:25 on WCRN 830 AM.

FRESH START PROGRAM (2)
As we discussed yesterday, a Federal Tax Lien gives the IRS a legal claim to a taxpayer's property for the amount of an unpaid tax debt. Usually, the Government is not the only creditor that a taxpayer owes money and filing a Notice of Federal Tax Lien is necessary for the IRS to establish priority rights against certain other creditors. It used to be that if you owed the IRS more than $5,000, they would automatically file a Notice of Federal Tax Lien. As part of the "Fresh Start" program, the IRS has doubled that threshold to $10,000 before an automatic lien is filed. This is a great thing for taxpayers as a lien will stay on your credit report for 7 years after you pay off the tax debt.

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