Category Archives: Tax Law

Tax Law

The Importance of Hiring a IRS Attorney When Dealing With The IRS

Hiring a good IRS lawyerHiring a tax attorney can be intimidating, especially if you are unfamiliar with tax laws. However, it is important to hire someone with experience in dealing with the IRS. Choosing the right IRS lawyer will make the whole process go much more smoothly. In this article, we’ll go over the benefits of hiring a tax lawyer and how to find one. A tax lawyer can also save you time and money by negotiating the fees.

– Find a tax lawyer who is a member of your state bar. A New London tax attorney might not have good relationships with the IRS and may not be able to make a strong case on your behalf. Also, a local tax attorney may have to travel hours away from their office to meet with you, which could otherwise be spent with your family. The lawyer should be able to communicate effectively with you and help you understand your situation.

– Avoid paying hefty penalties. A tax attorney protects you from abuse from IRS agents. While most agents are friendly and helpful, some can be downright rude. Hiring a tax attorney allows you to avoid the hassles of communicating with the IRS and handle all of your interactions with them. By handing over the difficult casework to your lawyer, you’ll have peace of mind knowing that the IRS has all the documentation they need.

– Tax attorneys have specialized training. Most tax attorneys begin with a Bachelor’s degree in accounting or other related field. However, if you’re looking to make a career out of tax law, you should focus on a lawyer who has extensive experience. This will help you avoid problems in the future and save you time and frustration. To become a tax attorney, you must complete the required law school courses and pass the state bar exam.

– A tax attorney charges an hourly rate. This can range anywhere from $200 to $500, depending on the complexity of the case. The hourly rate depends on how complicated your case is, and the location of the lawyer. Hiring an attorney will ensure you have a strong representative during this critical initial interview. If you’re facing criminal charges, your attorney will be your best defense. If you’re accused of tax evasion, you must hire an attorney who specializes in tax law.

Moreover, hiring a tax attorney is essential if you’re under audit from the IRS. Your tax attorney can assist you during the audit by communicating with the IRS and making sure you have all the records you need to file the return. An experienced tax lawyer will also help you prepare your case and represent you in court if the IRS decides to pursue you for back taxes. A tax attorney will make sure that you’re not wasting time and money while preparing for your audit.

Hiring a tax attorney is a great idea if you’re facing an IRS audit or need assistance with estate planning. A tax attorney can help you minimize taxes, help you negotiate better interest rates, and help you avoid paying more than necessary. Moreover, an attorney is well versed in estate law and can protect your loved ones and beneficiaries from unnecessary tax liabilities. However, it’s always best to hire a qualified tax attorney who has a background in estate law.

Tax Law

Learning the Basics in Tax Settlement

If you owe federal or state taxes, you should consider pursuing a Tax Compromise Oregon, said a tax fraud defense lawyer in Oregon. This program is administered by the IRS and can help you avoid tax liens by negotiating a lower payment. Taxpayers can also try to negotiate with the IRS by applying for an Offer in Compromise (OIC). An OIC is an agreement between the IRS and a taxpayer that reduces their debt in exchange for a reduction in the total amount owed. The most common reason for rejection is because of self-prepared applications. Few people have the expertise to calculate the complex formulas used to determine OIC eligibility. Self-prepared applications have a 95% decline rate.

An Offer in Compromise is a type of tax debt settlement where a taxpayer agrees to settle their debt for less than the full amount owed. The taxpayer proposes an amount for the settlement, then chooses a repayment plan. If the IRS approves the offer, it will stop pursuing collections efforts and can be used to eliminate the balance of a tax debt. The IRS will accept an offer in Compromise only after determining that the taxpayer cannot pay the full amount.

In order to qualify for an Offer in Compromise, a taxpayer must agree to pay a minimum of twenty percent of the total amount of the offer. The offer must be based on compelling equity. This means that the offer must reflect the fairness of the debtor under the circumstances. It is important to understand the process so that you can decide if an Offer in Compromise is the best option.

Despite the opposition from Republicans, Democrats have pushed through a tax compromise to increase revenues. The measure, HB 2060, passed the state legislature after a three-hour debate during a special session. Despite being a “giveaway” to corporations, the bill is opposed by Republicans who say it will harm hundreds of small businesses. It is unclear what will happen to the proposal now that it has passed the legislature.

In Oregon, the budget balances the state’s budget with reduced revenue. Recession cut expected General Fund revenues by one-fifth, leaving Oregon with $4.2 billion less in revenue than expected. The state’s unemployment rate rose to 12.5%, so lawmakers viewed the bills for their overall fiscal impact and potential job creation. In the end, both chambers voted to pass the compromise bill.

An Offer in Compromise (OIC) can be filed when a taxpayer disputes a tax liability. The taxpayer must submit supporting documents to prove their case. The IRS audits the documentation and decides whether the offer should be accepted or rejected. The taxpayer can appeal to the IRS if they believe they are entitled to a more favorable result. Nevertheless, taxpayers should consider tax compromise as a last resort if they cannot afford to pay their taxes in full.

The tax debtor can file an Offer in Compromise for various reasons. For example, the person can claim that he is not legally liable but believes that he can pay less than the full amount owed. Other options are offers based on doubt as to liability or doubt as to collectability. If a person’s financial situation improves and they are unable to pay their tax debt, they can file an Offer in Compromise based on doubt as to liability.

Effective Tax Administration (ETA) offers are accepted when the taxpayer can demonstrate that collection of the entire liability would impose an economic hardship on the taxpayer. The taxpayer must demonstrate that he is unable to pay his basic living expenses because of the unavoidable expense of the tax debt, or he cannot borrow against the equity in his assets or liquidate those assets to pay the debt. Further, the taxpayer must prove that he has induced others to ignore the tax laws.

An ETA Offer is not available for everyone. Taxpayers who meet this criteria have to be in a situation of exceptional hardship. They have to have the ability to pay the debt in full. If the IRS rejects their ETA Offer, they can appeal the decision to the Tax Court. The Tax Court will consider the appeals of taxpayers who have filed for bankruptcy, as long as they meet certain requirements.

Tax Law

Benefits of Working With Tax Attorney

Having to deal with taxes can be overwhelming, but you have to meet your legal obligations. The help of a Frankfort tax attorney can help you make sense of the confusing laws regarding taxes. Tax law covers a range of issues, including audits, appeals, income taxes, employment taxes, and more. Each state has its own tax laws, which makes finding a qualified Frankfort tax attorney essential. Read on to learn more about hiring a Frankfort tax attorney.

The law firm of Stites & Harbison, PLLC, is located in the Southeastern region and represents business and institutional clients throughout the United States. The firm traces its roots back to 1832, making it one of the oldest practices in the country. The firm is comprised of over 200 attorneys and maintains offices in Louisville, Jeffersonville, and Washington, D.C.

The law firm is based in Frankfort, Kentucky. Their website lists all attorneys in the state. Their attorneys are registered with the Kentucky Bar. Each of the attorneys in Stites & Harbison has a specific area of law that he or she focuses on. The firm offers a free initial consultation, so you can meet with an attorney to discuss your situation. Once you’ve decided on the legal firm, be sure to compare the fees, skills, and experience of each individual attorney.

The Charles T. Mitchell Company is a trusted local accounting firm. Founded in 1964, this firm is part of the Frankfort community. Their professional staff includes partners who are certified public accountants and are members of the Kentucky Society of Certified Public Accountants. Whether you need help with your tax return or you need help with business planning, they’ll have the answers you need. Charles T. Mitchell Company’s Frankfort location is located near Versailles, KY.

The CPA Rick Yates, CPA, at the Charles T. Mitchell Company Pllc in Frankfort, KY, has extensive experience in tax preparation and small business accounting. He is an IRS-registered tax preparer with years of experience. He provides tax planning, bookkeeping, and estate and trust taxes. While his practice is focused on nonprofits, he can also handle businesses and individuals.

Tax Law

Tax Lawyer: Learn How to Deal with Tax Debts and Penalties

The IRS may compromise the full amount of a liability in some cases. This is because the full collection of a taxpayer’s tax debt would weaken public confidence in fair and effective tax administration. In these cases, the IRS will accept an offer of compromise if the taxpayer is able to demonstrate exceptional circumstances. To qualify, a taxpayer must have a significant tax debt. The following factors should be considered when negotiating an income tax deal with the IRS.

A taxpayer must have a reasonable ability to pay the total amount of the tax liability. The amount must be lower than the amount the taxpayer can pay if he or she makes an income tax offer. The taxpayer must also have sufficient funds for basic living expenses. The IRS will calculate the taxpayer’s ability to pay based on the tax liabilities due at the time of the offer. If the amount of the tax debt exceeds the IRS’s limits, a settlement will not be approved.

The IRS has a pre-qualifier tool that can help determine whether a taxpayer qualifies for an offer in compromise. If you have more than $50,000 in tax debt, you should not apply for an offer in compromise. If you owe less than $50k, you do not qualify for an offer in compromise. If you owed more than that, you should look into other payment options. If you have no other option but to pay the debt, you should consider the income tax compo.

Before applying for an income tax compromise, you must make sure that you are eligible to use it. It is important to note that an Offer in Compromise is only effective if you are insolvent, and it is not an option for taxpayers who are struggling to pay their bills. You must make sure that the IRS has a reasonable chance of collecting the full amount owed. If you are not eligible, you should consider the alternatives available, said Louisiana tax fraud attorney.

The IRS is likely to reject a taxpayer’s offer if they offer a small sum. A small amount may be rejected, as it is not enough to pay the full amount. But you can make a compromise with the IRS by submitting a form that is as detailed as possible and as specific as you can. You should also provide as much information as possible when submitting the form, as this will help the IRS evaluate your proposal.

The IRS has adopted national and local standards of allowable expenses. These standards will be used to determine whether a taxpayer is eligible for an offer in compromise. In other words, the IRS will consider what is in the best interest of the taxpayer. In this case, the IRS will be able to make the decision based on the criteria set forth by the Department of Justice. In such a case, the IRS may decide to accept the compromise if the taxpayer meets the criteria. For more information visit www.louisianataxattorneys.net.

Tax Law

Tax Relief – How the RELIEF Act Helps Small Businesses?

Tax Relief refers to various measures that reduce or remove the responsibilities of compulsory payment. Exemptions may apply to people, income, property, and transactions. They may provide complete exemption from taxes, reduced rates, or only a part of the item is exempt. There are several types of exemptions. In some cases, the deductible amount can be greater than the taxable amount. For example, an individual can get a full tax exemption on his or her home.

Tax Relief

Whether you qualify for the new IRS tax law is a personal choice. However, it’s important to be aware of the new requirements and deadlines. This can be very confusing. The most logical option is to seek tax assistance. The government has made a number of changes to help the public. The RELIEF Act is one of them. It provides targeted tax relief to unemployed individuals by repealing state income tax on unemployment benefits. The act also gives small businesses a $300 million commitment to assist them. It is a sales tax credit, based on the amount of revenue and sales tax collected on a particular month.

The RELIEF Act allows qualifying small businesses to claim $200 million in sales tax credits. These tax breaks are based on a sliding scale. If your business generates $50,000 or more in monthly revenue, it’s worth claiming a credit for every $3,000 you earn. This means that a person can claim more than $9,000 in sales tax. This will result in a lower bill, but you can’t claim every credit.

There are many other ways to find tax relief. Visit https://www.marylandtaxattorneys.net/ for more details. The RELIEF Act provides a one-time opportunity to businesses to reduce their costs. It will extend unemployment insurance and stop tax hikes until 2021. It also protects businesses against tax increases on state loans and grants. The state will fund the RELIEF Act with the leftover surplus from the FY20 budget and from action taken by the Board of Public Works. The RELIEF Act can help Marylanders in many ways, including by cutting gas taxes and providing more education grants.

A tax relief grant can be a lifesaver for many taxpayers. It can be a way to get a refund from the IRS that you can’t pay back. If you need to save money, it’s worth applying for one of these tax breaks and making sure to qualify. In addition to the tax relief grants, it also provides a financial boost to small businesses, allowing them to expand their reach. This can help them avoid bankruptcy.

Another tax relief program is the substitute return. This is an option that allows a business to avoid contacting the IRS for help with their tax preparation. The substitute return uses the information the business has on hand and creates a tax return for them. The government will then send them a bill based on the information they have available. This option is a guaranteed headache because it doesn’t know what deductions and credits a business can receive. It can also lead to a much higher bill than it would have if the taxpayer prepared it on their own.

Tax Law

What To Look For In A Tax Relief Company?

There are many ways to deal with an IRS tax investigation. Hiring an attorney is the most common option, and the benefits of such an attorney far outweigh the costs. An experienced tax lawyer can help you negotiate with the IRS and minimize the cost of larger penalties. They will work with determination and a keen eye to detail, and will work to resolve your tax controversy quickly and efficiently. It will also allow you to continue your business while avoiding larger problems.

How Can IRS Lawyers Assist You

An experienced IRS lawyer in Fort Wayne, Indiana knows the laws and regulations governing taxes. It is important to hire an attorney who understands these laws and regulations. The IRS has a vast database of rules and regulations, so you want someone who is experienced in these matters. You will also want someone who is experienced with the relevant precedents and proceedings. The tax codes are constantly changing, making them impossible to comprehend. Don’t hire a lawyer straight out of law school, though – their training and experience will help you immensely.

An experienced tax attorney will be able to provide an estimated legal fee based on similar cases. This information will be invaluable when you’re working with an attorney. If you don’t know how much a particular case will cost, you can ask for a free estimate from the firm. In addition to providing an estimate of legal fees, a qualified tax lawyer will also provide testimonials to support their abilities.

An experienced IRS attorney will know what to look for in a tax relief company. For example, they will be able to give you an idea of their experience and licensed attorneys. This will help you find the best option and the best rate. You can also use Super Money’s website to compare the different offers and rates of different companies. By doing so, you will be better able to select the company with the highest success rate.

An IRS attorney will also be able to help you minimize foreign tax liabilities. Unlike other creditors, the IRS has the ability to seize your bank account and garnish your wages. An IRS attorney will be able to help you make the most of this opportunity and will work to ensure that the IRS does not collect more money than it can afford. If you’re having trouble paying your taxes, it’s best to hire a tax attorney with a high success rate.

The IRS is a very tough organization. It is important to have a tax attorney by your side to prevent the collection of additional taxes. The IRS has many legal strategies for resolving tax disputes, including garnishing wages, levying vehicles, and enforcing your rights to avoid penalties and fines. Regardless of the type of tax issue you’re facing, you should consult with a qualified IRS attorney immediately.

Tax Law

Hiring an Experienced Tax Lawyer- Pros and Cons

If you have tax liabilities that are not covered by any other tax relief you may be entitled to, you should seek tax relief. You may be able to reduce your tax liability by applying certain tax relief options. You should contact a tax lawyer who is experienced in tax law to help you determine the tax liabilities that you might be eligible to apply for. If you make an error while calculating your tax liability and need an expert to correct the error, the tax liability reduction may save you money and time. It can also provide tax relief to people with multiple tax liens.

Most tax liabilities come from assets rather than income. Your asset value, which includes your depreciated or net worth, is usually the first thing to be considered when calculating taxes. The second factor, assets, is based on your adjusted gross income, which includes your gross salary plus your income from interest, dividends and other miscellaneous items. You should calculate your tax liabilities based on the total of your earned income minus your standard deduction and the amount of tax due.

Most tax liabilities come from investment expenses. Real estate investments, business losses and charities are all examples of expenses that may apply to you. Charities and public organizations may apply for tax relief based on the charitable contributions they make. In some cases, you may be able to claim deductions for the state and local taxes you pay. When filing your tax return, any deductions that you apply will be itemized.

Another tax relief available to businesses and business owners is the depreciation amount. This amount is equal to the difference between the purchase price and the current fair market value of your asset. Business owners can depreciate their assets by using tools like depreciation tables and business assets. They may also use an accrual basis, which means that the amount of tax paid will be based on how much the asset’s value has increased since you purchased it instead of how much you paid for it.

www.missouritaxattorneys.netAside from income tax liabilities and capital gains tax liabilities, business owners and entrepreneurs may also owe property tax liabilities. Property tax consists of tax on the gain or loss of a specific property. If you owe this tax, you must pay it along with your federal, state and local taxes. The tax amount you pay depends on how much your property is worth at the time you took possession of it, as well as what tax rate was in effect when you bought it.

When you need tax help, it’s important to find a tax attorney who specializes in tax law. An attorney can guide you through tax debt settlement, tax relief, tax planning, and tax relief for corporations. Before hiring an attorney, be sure to check his background and credentials. It’s important to get tax help from professionals who are familiar with all the tax laws. With tax liabilities lurking, it’s better to take preventive measures and settle tax debts in a timely manner. For more information visit us at www.missouritaxattorneys.net.

Tax Law

How to Handle Tax Related Cases?- Hire a Tax Lawyer!

The tax laws in New Jersey are designed to bring a change in the manner of tax payment to citizens and non-residents in the state, said an IRS audit lawyer in New Jersey. In fact, every citizen is required by law to pay tax on income or assets every year. Most of us do not like this system and it is one of the reasons for which we opt for hiring a New Jersey tax attorney to fight for our rights. There is a list of things that you need to know about New Jersey tax attorney, and these are discussed below:

IRS audit lawyer in NJ

There are different kinds of taxes that you need to pay in New Jersey. These taxes include income tax, property tax, vehicle tax, sales tax, Medicare, estate tax, and inheritance tax. If you do not have much idea about the tax implication and do not understand what tax you need to pay, you can hire a tax attorney to make you understand all about the new tax laws. A tax attorney can help you plan your tax expenditures or future tax returns so that you pay as few taxes as possible.

One of the major tax considerations in New Jersey is the property tax. This tax is imposed only on real properties in the state and it is collected by an agent who collects rents from tenants. If the property that you are looking to buy has a value that is more than a thousand dollars, then you will be required to pay a tax on the value of the property. However, if the property that you want to buy is less than a thousand dollars, you will be required to pay for the property taxes on the basis of income. So, if you really want to save money on your tax payments in New Jersey, you need to ensure that you do not pay property taxes on high value property.

Another way through which you can lower your income tax in New Jersey is to minimize your tax obligations on non-income producing businesses. There are basically two kinds of businesses in the state; those that produce tax exempt goods and those that produce tax exempt services. In recent years, goods produced by New Jersey companies have become very popular with tourists from around the country because many of them earn tax exempt status on their sales. In addition, many businesses have set up shop in New Jersey and these businesses also qualify for tax exemption status. Many of these businesses include bakeries, but there are other businesses that also fall into this category including window cleaning firms, hairdressers, massage therapists and others. So, if you want to save money on the taxes that you pay in New Jersey, you need to ensure that you do not classify these types of business as income producing businesses and you should instead treat them as non-income producing businesses.

If you need to reduce your tax obligations in New Jersey, then one of the best ways to do so is to make sure that you do not buy any properties. If you are thinking of buying a property in New Jersey, it is imperative that you consult a tax adviser in order to find out if you qualify for tax relief. If you qualify for tax relief, you will find that you will save a lot of money on the property taxes that you have to pay in New Jersey. As an example, did you know that you can get a tax break on real estate if you live there for five years? If you live in Jersey City, New Jersey, then you can get a tax break on your real estate property if you live there for at least five years.

You may also be able to qualify for tax deductions if you have made a lot of charitable contributions over the years. Some charitable contributions that you can claim for tax reduction purposes include school student housing expenses, adoption assistance, help for women and children, and medical costs related to getting a new family member. If you live in New Jersey, it is important that you get a tax preparer to help you with filing your tax returns so that you can get maximum tax benefits from the tax laws in New Jersey. If you file your tax returns on your own, you may find that you are not able to claim a lot of these tax benefits, and this could make it more difficult for you to get a good tax refund when you file your returns at the end of the year.

Tax Law

Facing IRS Audit?- Read the Tips from an Expert Tax Attorney

If you’re facing an IRS tax audit, it’s highly likely that you’ll need the assistance of an IRS tax relief lawyer. The tax code is extremely complex, and it can take years to understand it. It’s easy to get lost in the many regulations, forms, and instructions. It’s not uncommon for a taxpayer to go months without making any income tax payments at all. Unless you’re experienced with the IRS tax code, this can make you a prime candidate for an audit.

Tax Relief

One of the first things you want to do before deciding to hire an IRS tax relief lawyer is decide what your tax liability situation is. Only file an income tax return if you’re absolutely certain that you owe no more back taxes than you’ll be paying. It’s usually not a good idea to even attempt to claim deductions if you’re not sure about the amount of income tax you owe. That’s why it’s so important to use the services of a tax resolution professional to help you through the process, said a tax lawyer offering services in all of Virginia.

In addition to your criminal and civil tax liabilities, there are other issues that may arise during an audit. One of these is an issue of US tax lien. If the IRS seizes property or assets because you owe them money, you could face jail time if you don’t appoint a tax lien agent to retrieve the property or assets. Even worse, if the IRS seizes property or assets without just cause, you may face criminal charges.

If you owe back taxes, but don’t think you owe criminal tax liability, then you may qualify for a tax resolution. This can include: Offer in Compromise, Installment Agreement, IRS Payment Modification, and Currently Not Collectible status. Look for a tax lawyer that has experience with these issues so you won’t have any surprises later on. Some tax lawyers are specialists at each of these. Ask your potential tax lawyer which of these best describes your situation. Once you know how to best go about dealing with the back taxes, you will be on your way to getting the relief you deserve.

When you owe criminal tax liability, there are actually several ways to legally get out of jail. You might be able to negotiate with the IRS to have your penalties reduced or forgiven altogether. If you can’t do this, consider hiring a tax lawyer to make this for you. Hiring one to negotiate on your behalf can save you in both tax fines and time spent in jail. If your tax liabilities are large, hire multiple tax attorneys so they can negotiate with multiple government agencies for bigger tax breaks or reduced penalties.

Tax fraud is a serious charge, though. If you’ve been accused of criminal tax fraud, you’ll probably have to go to jail. Before you go to jail, however, you should consult with a tax lawyer who can advise you on your tax liability relief, such as consideringmitigation or sealing your record with the IRS.

Many times people are wrongly accused of criminal tax fraud when they’re actually innocent. When this happens, the IRS can make additional demands on your assets or interest payments. The IRS will usually want proof that you did not directly benefit from the fraudulent transaction, but hiring a tax lawyer can give you an advantage in court. In order to be completely innocent, you must be able to prove that the transaction did not affect you, your income, and/or property.

As we’ve discussed, tax relief services are designed to give you options if you’re facing criminal tax charges. This article should have given you some ideas about what to look for when you’re trying to hire a tax lawyer. We wrote this article as a general guide, and it’s important that you discuss these issues with a tax lawyer that you trust implicitly. There are many law firms that offer tax relief services. It is up to you to find the firm that will treat you right, and help to ease your suffering while helping you pay your overdue taxes.

Tax Law

Tax Levy Attorney – Protect Your Rights, Get Your Tax Lien Dismissed

Tax Levy AttorneyA tax levy is generally understood as the mandatory taking of private property by a taxpayer in order to satisfy tax liability on a tax return. The property in question can be homes, cars, boats, properties, insurance, brokerage accounts, bank accounts, payrolls, gifts, tax refunds and many more. Tax levies are collected by local municipalities in various ways, including real or tangible personal property seizures and voluntary contributions from taxpayers. Although they are common in the United States, they are not consistent across the states. States such as Illinois and California have enacted statutes requiring levy settlements. States in the Midwest, such as Iowa, Missouri, Wisconsin and Minnesota, generally allow for state-ordered and federal tax levies.

To determine whether you may be required to obtain a tax lawyer, contact a reputable Colorado Springs, CO real estate lawyer who has experience in handling such cases. You can contact the National Association of Estate Professionals, which is a not for profit organization that provides complimentary initial consultations and legal advice. The National Association of Estate Professionals can provide you with a free consultation or refer you to a qualified Colorado Springs, CO tax lawyer. For details, click this link www.coloradotaxattorneys.net/tax-levy-lawyer-colorado-springs-co/.

If you do not have time to visit the National Association of Estate Professionals in Denver, look up its website. The site offers professional legal advice for all situations, including estate planning, probate, taxes, trust administration, and real estate. At the top of the site is a link to find a free consultation. During the consultation, the professional will review your situation and help you develop a plan to resolve it.

After the National Association of Estate Professionals finishes their free consultation, you can contact the attorney, lawyer, or estate planner for a free consultation. At the consultation, the professional will review your situation and help you develop a plan to resolve it. If the solution does not work, the professional will file a complaint against the municipality that has filed the tax lien against you. The court proceedings usually take months, even a year to complete.

Tax Liens are issued by municipalities before they tax a property, such as a restaurant. In order to tax a business, a tax lien must be filed. This document tells the IRS how much the property is worth, the amount of taxes due, and when the property is going to be taxed. After this date, the property owner owes Uncle Sam his money.

Tax Liens are created for public safety and to protect the revenue. If there is an on-going water shortage, there may be a flood. A tax lien gives the governments a safe and secure place to store the water. Without the tax lien, there would be flooding and a property tax would be due.