When you are faced with a tax liability and cannot resolve it within a reasonable period of time, the authorities will file liens (or tax court orders for some states) as a stepwise step in the collection process. A link notifies the public that you have a tax liability. Insures your interest in your property, accounts receivable, tangible and intangible assets. Recent reports show that the IRS has been increasing its use of federal tax liens to help collect back taxes. If you have received one, you should know that you have options, and it is in your best interest to act quickly. To ensure you get the best possible result, follow these initial steps to resolve your tax problem.

1) Don’t delay or ignore it

It may seem obvious, but it is the most important step. And if you’ve been putting off a tax problem and received a tax lien notice, you’ve now reached a point where it’s in your best interest to contact the Internal Revenue Service or state taxing authority. You can easily contact them directly or use a tax resolution expert to handle communications for you. Facing a tax problem can be stressful, but not dealing with a tax problem will only make a bad situation worse. Remember, a tax link is not the final step in collections.

2) Confirm that the link is valid and accurate

Once you have received a notice, you should contact the tax authority and verify the link. Do you owe taxes? Do you owe for the type of taxes listed in the link? I know of a restaurant that the Internal Revenue Service sent an excise bill to for tanning beds, it may fit in the kitchen, but there are no tanning beds. Don’t assume the link is correct. Check your records and compare with the taxing authority that what they say you owe, you actually owe.

3) Research your appeal or withdrawal options

If you have sufficient evidence, reasonable cause, or other extenuating circumstances (such as bankruptcy), you may qualify to appeal or even have the lien removed entirely. In certain cases, the IRS may allow a temporary lifting of a lien, often when it’s in your and the IRS’s best interest, such as selling a property to use the funds to pay the tax debt. Many people (and occasionally some less scrupulous tax attorneys) will file an appeal in error, and doing so can make it more difficult to get tax relief by extending certain statutes of limitations.

4) Determine if the tax debt can be paid

If you have the means available, often the best option may be to pay off the debt immediately so that the bond is released. If you need to sell assets to help pay off tax debt, the IRS will often work with you to release the lien. Depending on the amount of the tax lien, you may want to consider your credit or loan options because you will often pay less to a bank or lending institution than to the Internal Revenue Service or state taxing authority on a payment plan.

5) Set up your tax debt solution and follow through

It can feel like you’re stuck with limited or no options when you have tax debt. And that’s why working with a tax resolution expert can be extremely helpful. A qualified expert should know the options available in your situation and which method best absolves the debt and releases the tax lien. And while revenue officers likely have this information as well, you can’t always expect them to give you the answers (remember, their job is to pay off the debt in full as quickly as possible).

Whatever your solution, the final step is to keep up with the process. Get your paperwork on time. Meet any deadlines you set with the tax authority and provide your documentation in a method that is verifiable (you don’t want your records lost in the mail). If you receive a request or notice from the IRS or the state, it’s important to be responsive. Although you may have worked out a method to resolve your tax debt, there is often a lot of paperwork and communication that needs to go on. It is entirely feasible for an individual or business to be able to fulfill these responsibilities on their own, but again, a good tax resolution expert should be able and willing to take care of these items at a reasonable cost.

Every situation is different, but if you received a tax lien notice, follow these steps and you’ll ensure the best possible outcome for your financial future.