What is a Business Sales Tax lien?

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What is a Business Sales Tax lien?

Business sales tax liens can upset the financial strength of your business. It can even put your business in jeopardy. Because tax liens can be overwhelming to your organization, it is imperative you avoid it at all cost.

Defining Business Sales tax lien

A Business Sales tax lien is a notice or public record issued To Whom It May Concern, stating that the State has a right to your assets. It would alert creditors as well that the State has a legal interest in your property for failure to pay your tax. This record is filed for failure to remit outstanding tax.

The Notification process

Typically, the Business Sales tax lien is not filed until the State has sent you a series of notices regarding your outstanding payments.

First, the state will issue you a notice about your outstanding business sales tax debts. Next, it will issue a notice about the intent to file a tax lien.

Finally, once the sales tax lien has been officially filed as a public record, the state will send to your business address, a certified notice about this development.

How do tax liens affect your credit?

After a tax lien is filed, it will show up on your credit report, thereby hurting your business credit score and will ultimately make it difficult for your business to seek additional loans.

However, due to new policies, a tax lien might not appear in your commercial credit report, but it can still harm your credit score and will be available to creditors.

Also, a business sales tax lien shouldn’t affect your personal credit reports, but this is applicable if you are a sole proprietor. However, it can still be removed from your personal credit report.

The tax lien will be present until you have either paid the tax owed, reached a compromise with the authorities or got the debt dismissed in a bankruptcy court.

However, even when you have paid your debts in full, and the lien has been removed, it may still be made available to lending institutions in the future and they could see you as a high-risk borrower.

A tax lien can shatter your business health, therefore, you should do everything you can to avoid it.

How can you prevent a business tax lien?

To avoid such events, you should ensure that all your financial records are meticulously kept. This ensures that you pay your business sales tax on time and accurately.

What can you do about a business sales tax lien?

There are many circumstances that may apply to you once you are issued a tax lien. But, with the help of a tax professional, there are also different strategies to avoid the repercussions of a tax lien.

It is possible to prevent, remove or withdraw a tax lien from being filed. Therefore, dealing with this issue should be a top priority for you.

It is time to resolve your business sales tax problems and get your business in the proper direction. Connect with us today by calling (212) 320-8191 or send an email to us at info@urgenttaxservices.com.

Urgent Tax Services

6009 16th Ave,

Brooklyn, NY 11204

Ph. (212) 320-8191

Fax (646) 626-6447




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