First, what is a tax lien? It is a legal way for the IRS to get an individual to pay tax debt. Liens can be placed on personal or real property when you fail to pay taxes within a given period of time. The lien is usually filed at a local County Clerk’s office and is a public document. It can also be filed with the Secretary of State.

Through the lien the IRS gains legal claim on property until the lienor can pay the tax that is owed. Tax liens are not only inconvenient but they can also affect your credit rating. The sale of any personal property will also be difficult or even impossible.

Your top priority should be to remove a tax lien as soon as possible. Here is what you need to know:

1. You have 30 days to respond to a tax lien after receiving a “Final Notice of Intent to Levy”.

2. Tax liens can expire but this may not be the best option. For tax liens more recent than November 6, 1990, the tax lien becomes unenforceable after 10 years. For all liens prior to November 6, 1990, the tax lien becomes unenforceable after six years.

3. A tax lien can show on your credit report forever. Even if it expires the lien will remain on your credit report, whether the IRS acts upon it or not.

4. Pay the tax that is owed. If you choose this option, your tax lien should be removed within 30 days. It can be removed from your credit report as well.

5. Prove a financial hardship. If you can prove to the IRS that levying money in your bank account will cause more harm than good and that it may cause you to never be able to pay them what you owe them.

6. Your best option is to consult with a tax professional to help you create a realistic tax payback plan or correspondence with the IRS.

A tax lien is a legal way for the IRS to get an individual to pay tax debt that is owed to them. A tax lien can be placed on either your personal or real property when you fail to pay taxes within a given period of time. For example, an IRS tax lien can attach to your possessions (house, car, boat) and to any property or items that you may acquire even after the IRS files a lien. The lien is usually filed at a local County Clerk’s office and is a public document. It can also be filed with the Secretary of State.

The IRS gains legal claim on property until the lienor can pay the tax that is owed, the idea being to encourage the lienor to pay the tax. If the IRS has placed a tax lien on you, it will seriously affect your credit rating and will either render sale of personal property difficult or impossible. Removing a tax lien should be a huge priority for you, as you’re no doubt well aware.

What are the options?
First, time is of the essence. You have 30 days to respond to a tax lien after receiving a “Final Notice of Intent to Levy” so respond swiftly.

Wait it out and let the tax lien expire. For several reasons, this is not the best option. There is a set time period in which a tax lien can be acted upon. For tax liens more recent than November 6, 1990, the tax lien becomes unenforceable after 10 years. For all liens prior to November 6, 1990, the tax lien becomes unenforceable after six years. If you have had a tax lien for a considerable amount of time and the IRS hasn’t seen fit to act upon it, perhaps just waiting for the period to expire is an option you wish to consider. If the period expires with no extension, then the possibility of an action on the tax lien has been removed. This option certainly requires the least amount of effort, but you will have to live with the possibility that the tax lien will be extended before it expires. In addition, the tax lien can show on your credit report forever if you don’t pay anything to remove it.

Why might the IRS decide to let the period expire without hounding you any further or acting upon the tax lien? You might not realize it but it costs the IRS money every extra step of the way when they are trying to get hold of taxes that are owed. The IRS has made a science of figuring out whether this extra effort is worth the money and if they can ultimately expect to collect. Hence, the hesitation – the IRS may determine that it’s not in their best interest to proceed in collecting on a tax lien. While this is good for you, it does nothing to remove the tax lien from your credit report. It remainsl in effect, whether the IRS acts upon it or not.

Pay the tax that is due. If you choose this option, your tax lien should be removed within 30 days. It can be removed from your credit report as well. Upon removal of the tax lien, you may receive proof that the lien has been removed in the form of a certificate copy. Ask for a copy of this documentation if it is not sent automatically.
Proving financial hardship. Consider proving financial hardship. This means you will need to prove to the IRS that levying money in your bank account will cause more harm than good and that it may cause you to never be able to pay them what you owe them. You must realize that the IRS wants to get the tax money you owe, so if you declare that you are, in their terms, “Currently Not Collectible”, you can buy some time and consult with a tax professional to help you create a realistic tax payback plan.

Brightly Colored Walls

Let your teen express herself with hot, bright, loud, vibrant paint colors on her bedroom walls. Let your teen soak up the intensity of bright colors in her bedroom. For example, your teenage daughter might paint her bedroom hot pink, or your teenage son might paint his room a bright, vibrant yellow. These colors are just an example and are not gender specific. Include wild accent decorations in your teen’s room. A teen girl who paints her room hot pink might want black and white zebra accents, which will ensure your teen’s personality will radiate in her bedroom.

Soft Impressions

Surround your teen daughter with a bedroom softly and elegantly decorated. This redecoration ensures she does not outgrow the design. Incorporate pale lilac and pale lime green or aqua and peach colors within her bedroom, according to TLC.com. Leave her walls simple but elegant. Include floral fabrics, vines and dried flowers in her bedroom. For an added decorative effect, paint a floral border on her wall, and surround the painted wall border with dried vines.

Sophisticated Room

Redecorate your teen’s room from cute to mature. Paint your teen’s bedroom walls a neutral color, and incorporate leather or plaid accents. Arrange seating for your teen’s guests within the bedroom. Include a study area, and an entertainment area. Highlight your teen’s book collection with open-faced bookshelves. Clean, crisp colors and lines complement this design. Redecorating your teen’s room with a sophisticated theme ensures that you do not need to redecorate the room again after your teenager moves out of the home.

Themed Room

Convert your teen’s bedroom into a room that suits his hobbies and personality. If your teenage son loves video games, football, skateboarding or music, allow him to express himself in his bedroom. Paint his walls accordingly, and tape posters around his bedroom in the theme chosen for his redecoration. Accessories can make or break his room. For example, in a football room, do not include accessories non-football related. Allow your teen son the ability to fully express himself in his themed bedroom.

What should I buy?

The National Burn Institute recommends only buying smoke alarms tested by Underwriters Laboratories (UL). You will also want to make sure the smoke detector has a battery backup. Smoke detectors that don’t work in a power outage are no good. Consider buying a combination smoke detector and carbon monoxide detector, they may be more expensive, but well worth the money.

There are two main types of smoke alarms, which are categorized by the type of smoke detection sensor used in the alarm. They are ionization and photoelectric.

Ionization smoke detectors

Ionization detectors respond quickly to flaming fires with smaller combustion particles. They contain a chamber with two plates that generate a small, continuous electric current. When smoke enters the ionization chamber, the smoke particles disrupt the current flow, which triggers the alarm.

Photoelectric smoke detectors

Photoelectric detectors respond more quickly to smoldering fires. They use a light beam and light receptor. When smoke is present between the light and receptor, the photocell sensor triggers the alarm.

Combination smoke detectors

The best smoke alarms can sense both types of fires (flaming and smoldering). For the highest degree of safety and preparedness, there are combination smoke alarms also that combine ionization and photoelectric detectors into one unit, called dual sensor smoke alarms.

Check with your local fire department to see what kind of detector they recommend.

Installation and Maintenance

Smoke detectors should be installed on each floor, outside of every bedroom and sleeping area and near any air vents. Detectors should also be installed high on walls or on ceilings because smoke rises. Avoid installing detectors near windows, doors or where there are openings where smoke can escape.

Check with your local fire department for specific regulations on the placement of detectors.

Smoke detectors have a lifespan of about seven to 10 years, and it’s important to replace old detectors according to the model’s recommendations. Test your alarm’s batteries monthly and remember to replace all batteries at least once a year. Clean and vacuum the grill of your detector to get rid of dust and debris. Other maintenance includes a monthly testing of the alarm and cleaning with a vacuum hose about once every month.

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1. KNOW THE AREA

It is not just about the house you want to buy but also the area. Focus on buying homes in an area that holds value and where homes sell quickly. The golden rule of a home, location, location, location, applies here as you will want the home to be able to be sold quickly. Get to know the average costs and days on market for homes in that area. The more information you have about the market you have chosen, the better decisions you can usually make when it comes time to buy.

2. DO NOT GET EMOTIONAL

This is a business venture; your goal is to make money. Emotions and money rarely mix well. Do not get emotional about house flipping. When choosing colors, fixtures and carpets go neutral, you will not be living in the home. Be careful of becoming too attached to the flip. Choose a price to sell the home, do not overprice the home. Overpricing typically leads to you holding the flip longer thus reducing your profit.

3. KNOW YOUR LIMITS

If you are new to flipping homes, it is important to know your financial and work limits. The budget will always be more than you anticipate, plan for unexpected problems. Start with homes that mainly have cosmetic problems. Look for houses that need new, modern paint or updated fixtures. Homes where the outside yard and landscaping are unappealing are usually a great buy and can yield more profit. Curb appeal is usually a problem that can be fixed very easily and relatively inexpensively while greatly increasing the value of the home.

4. HAVE AN EXIT STRATEGY

The point of flipping is to get in and out as quick as possible. Every day that you own the homes costs you money. Have a plan and know exactly what you’re going to do with the home before you buy. Make a schedule of when work will get done and drop dead date of the house going back on the market. If you don’t know if you can sell it quickly, don’t buy it.

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