Tax Liens 101 for Trucking Businesses

If the IRS assesses a tax against you, sends you a bill, and you neglect or refuse to pay, federal tax liens will come into play. Tax liens are a powerful tool for tax collectors to make delinquent taxpayers responsible for their liabilities and motivate them to pay what they owe.

Tax liens can be placed on real property, like a house or land, and personal property, like cars and trucks. If you own a truck or a trucking business, you may be wondering how tax liens impact your business. This blog post will explore tax liens from both the perspective of truckers as well as companies who hire them. We’ll answer some questions on how tax liens work in these situations and what you need to know if you’re affected by one!

When Can Tax Liens Be Put on Property?

Tax liens can be placed on the personal property of a trucker if they are assessed for back taxes and do not pay, including their truck, house, other vehicles, and other assets. A tax lien can also be put on company-owned vehicles if the trucking business has a tax liability.

What Happens if I am Placed Under a Tax Lien?

If tax liens go against your property, you will not be able to sell them or use them as collateral without first paying the tax lien debt in full. Your tax liability can be paid off through an installment agreement with the IRS, but this may take time.

For truckers with an unpaid tax liability, you can have your truck repossessed by the tax authority. For companies who hire truckers, if a tax lien is filed against the personal property of one or more employees and they cannot get insurance coverage because of it, those individuals cannot drive their own vehicle on behalf of your company.

How Can I Get Rid of a Tax Lien?

The tax lien can be removed when the tax liability is paid or if there has been an agreement to release it in exchange for something else (i.e., giving up another piece of property).

Tax liens can be contested depending on the type of tax lien, if it is a federal tax or state tax. Tax liens can be removed by paying off the tax liability they are securing, or in some cases, because of an offer in compromise.

If you face federal and State tax liens or a large amount of tax debt that you can’t pay, tax relief may help you reduce what you owe the IRS or State tax agency. If tax liens are affecting your business in one of these ways and you’re not sure how to proceed, contact Golden Tax Relief today​!

Call Golden Tax Relief at 844-229-8936 today.

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