3 Ways A Tax Lien Can Impact Future Family Decisions
If you failed to pay your taxes and ignored notices from the IRS, then you could end up with a federal tax lien on your property. A federal tax lien does not mean the IRS comes and takes your assets, but you no longer legally own them until the lien is lifted. As you seek IRS lien help, learn how the lien could impact your family life and your decisions moving forward.
1. Vehicle Sales & Expansion
When the federal government puts a tax lien on your vehicle, you no longer have a claim to ownership over the vehicle. If you want to trade in the vehicle for a bigger family-friendly option like a truck or SUV, you do not have the option. A tax lien could also impact your ability to purchase a new vehicle.
For example, if you have a teenager, you may not qualify to co-sign a car loan so they can purchase a vehicle. Until you receive help to clear your lien, you are stuck with the vehicle you have or you have to pay all cash to add another vehicle to the ones you own.
2. Credit Card Usage
The credit impact on the purchase of cars also impacts the credit cards you have. A tax lien will show up in credit reports. You may not be able to apply for new lines of credit until the lien gets paid off. For example, if you plan a family vacation, you may not be able to book tickets or vacation packages on a new credit card.
If you sought out credit to help a child for college, then you may not qualify. You also wouldn't have the ability to expand your credit limits on current cards now. Financially, you would need to focus all your efforts on the removal of the tax lien so the impact doesn't cause negative effects for other aspects.
3. Home Changes & Real Estate Market
Just like a vehicle, you temporarily lose ownership of your home while you have a tax lien. You do not have the ability to sell your house or upgrade to a bigger home. If the real estate market swings in a positive direction, you could end up losing out on potential deals. If you want to expand the size of your family, you could miss out on key opportunities and feel forced to stay at your current location.
Find programs and ways to get the liens lifted so the impact does not hit your family hard.
Contact a local tax service, such as The Acct & Tax Co, to learn more.