Authorify - Tax Book Preview

wages and salary, personal effects, furniture, fuel, and provisions are all exempt. Local governments also can assess liens against real estate for failure to pay real estate taxes. After some period, the real estate may be sold to satisfy the tax amounts owing. • Internal Revenue Service Liens. A federal tax lien is the U.S. government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property, and financial assets. A federal tax lien exists after the IRS puts your balance due on the books (assesses your liability), sends you a bill that explains how much you owe (Notice and Demand for Payment), and you neglect or refuse to fully pay the debt in time. The IRS usually utilizes this lien if you’re unemployed, self- employed, or sporadically unemployed and the IRS would have trouble attaching your income. • Mechanic’s Liens. A common non-consensual lien on real estate is the “mechanic’s lien,” which can be obtained by one who furnishes labor, services, or materials to improve real estate. Mechanic’s liens are statutory, and the statute must be carefully followed. An automobile mechanic couldn’t obtain a mechanic’s lien on a customer’s house to secure payment of work he did on her car. To qualify for a mechanic’s lien, the claimant must file a sworn statement describing the work done, the contract made, and the materials furnished that permanently improved the real estate. • Family Law Real Property Lien. In a matrimonial action suit brought forth in the State of California, for


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