It appears Lindsay Lohan’s legendary IRS tax issues may be a thing of the past thanks to Charlie Sheen. According to a TMZ article, titled Charlie Sheen Paid Lindsay Lohan $100K to Cover Tax Debt the “no stranger to controversy” Sheen, befriended Lohan on the set of “Scary Movie 5” and decided to write her a check for $100K to help her pay down her massive tax debt, apparently out of the kindness of his heart. Back in February, I wrote a post about the recent tax lien filed on both Ms. Lohan’s 2009 and 2010 earnings that totaled $140,203.30. I mention Ms. Lohan’s tax problems to acknowledge how the IRS and other taxing authorities have no problem filing a federal tax lien against someone, including celebrities to make their life miserable.
Tax liens are a very serious matter. When the IRS files a tax lien against someone, they are using the lien to enforce collection activity for back taxes owed. Here are three points to know about IRS tax liens.
- Federal Tax Liens are public records indicating you owe back taxes. However, because they are public records they show up on your credit report and make it difficult to obtain financing for goods such as an automobile or a home.
- Federal Tax Liens also can tie up personal property and real estate because you cannot sell or transfer the property without a clear title. Also taxpayers cannot borrow against their property because of their inability to get a loan due to the Federal Tax Lien.
- Liens can only be Released, Discharged, Subordinated or Removed.
- A Certificate of Discharge of a lien is generally used when selling real property and paying the IRS in full with the sale proceeds.
- A Certificate of Lien Subordination is generally used in re-financing real property, allowing the re-financing of the property transaction to occur under certain situations.
- The IRS will only consider lien removal in rare cases where an error was made by filing the Notice of Federal Tax Lien in the first place.
Ms. Lohan was extremely fortunate to get tax relief from a good friend most likely releasing her lien assuming her tax lien was paid in full. Let’s just hope her expert tax team can make sure this very expensive mistake is never repeated in the future.
If you have received a collection notice from the IRS threatening an IRS tax lien, it is very important to act now to avoid harsh IRS penalties and fines. Contact a tax attorney or Certified Tax Resolution Specialist who can help resolve your case by taking the following action immediately (if applicable):
- Designate your case “currently not collectible.
- Help you file an IRS collection appeal to remove your tax lien, especially if there’s a levy filed on your bank accounts or your assets.
Hiring a qualified tax attorney or Certified Tax Resolution Specialist with knowledge and expertise handling cases like yours can help keep your credit rating intact, and put this IRS problem behind you.
More Tax Help, IRS News and Tax Relief Tips:
- Nicolas Cage Pays $6 Million-Tax Lien Released
- Proposed Law Could Revoke Passport for Tax Debt
- Tax Resolution Services Offers Returning Veterans Free Tax Advice
- Tax Help for Taxpayers who Missed April Deadline
- IRS Payroll Tax Problems Claim Alabama Town
Tags: celebrity tax issues, certified tax resolution specialist, Charlie Sheen, IRS penalties, IRS problem, IRS tax issues, IRS tax liens, Lindsay Lohan, tax attorney, tax lien, tax problems, tax relief