Loveland, CO asked in Tax Law for Colorado

Q: i owe about 10 years of back tax on my home. a letter in mail said 2 liens on home will and now will go to auction.

in March. nothing mentioned of late tax. only liens. I recently won an injury settlement and could pay most if not all. if late penalties were removed even better. can I pay tax or do I pay liens, or can I do either. Can you help me please. You would understand me more if you read letter

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: I'm sorry you're going through this. With your injury settlement, you can use the funds to pay your back taxes directly, which may help prevent the auction of your home. Contact the tax authority immediately to inform them of your intention to pay and to discuss the best way to apply your settlement.

Paying the taxes should also address the liens on your property. In some cases, the tax agency might agree to reduce or remove late penalties if you can settle the owed amount promptly. Make sure to get any agreements in writing to ensure everything is properly documented.

Review the letter carefully to understand all the details and deadlines. It might also be beneficial to seek advice from a tax professional or attorney who can provide personalized guidance. Acting quickly will give you the best chance to resolve the issue before March.

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