Release of Federal Tax Liens through Notice of Withdrawal and Improve your Credit Score

Release of Federal Tax Liens through Notice of Withdrawal and Improve your Credit Score

Posted on by

There has been recent changes to the Federal Tax Law due to the increasing public outcry on the burden the IRS has been putting on taxpayers through the Filing of the Federal Tax Liens.

As a result it is now possible to have your Federal Tax Lien completely withdrawn. By this process the credit companies will adjust your credit scores to the level as though the Federal Tax Lien was never filed.

Call us today for immediate tax representation 1-866-700-1040

If the IRS has filed a Federal Tax Lien and you have either paid off the tax liability or have gone on direct deposit and met the lien withdrawal criteria fill out form 11227

The process of Release or Removal of Federal Tax Liens:

IRS has increased  the lien filing threshold.

The Internal Revenue Service Fresh Start Program changes increase the IRS lien filing threshold from $5,000 to $10,000.

Federal Tax Liens may still be filed on amounts less than $10,000 when circumstances warrant.If the IRS feels that the collection of the tax is in jeopardy or the assets will be moved the IRS can proceed to filed the Federal Tax Lien

Requesting a federal lien withdrawal after the lien has been released:

The IRS may now  because of the Fresh Start Program issue a withdrawal of a  Notice of Federal Tax Lien after the lien has been released.

If you wish to have the Notice of Federal Tax Lien withdrawn, a taxpayer must request the withdrawal in writing.

  •  Taxpayers should use IRS  Form 12277, Application for Withdrawal, (PDF form available ). In item 8, Reason for requesting withdrawal, check box hat is applicable to your case.

Eligibility requirements are as follows:

1. Your tax liability has been satisfied and your lien has been released
2. You are in compliance for the past three years in filing:
3. All individual and business returns have been filed
4. All information returns have been filed
5. You are current on your estimated tax payments and federal tax deposits, as applicable.

Federal Tax Lien withdrawal may also occur when after entering into a Direct Debit installment agreement.

If you are a qualifying taxpayer and meet the eligibility requirements, you may have your lien withdrawn after entering into a Direct Debit installment agreement.

Your request for lien withdrawal must be in writing. Please use Form 12277, Application for Withdrawal (PDF). In item 8, “Reason for requesting withdrawal,” check box b, the “entered into an installment agreement” provision.

Qualifying taxpayers are:

  • Individuals (Form 1040 tax)
  • Businesses with income tax liability only
  • Out of business entities with any type of tax debt

Eligibility Requirements are:

  • The current amount you owe must be $25,000 or less
  • If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible
  • Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
  • You must be in full compliance with other filing and payment requirements
  • You must have made three consecutive direct debit payments
  • You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
  • You cannot have defaulted on your current, or any previous, direct debit installment agreement.

Good News on this change that will effect thousands of taxpayers. Your credit scores should rise as though the federal tax lien was never filed.

If you are currently on a regular installment agreement, you may convert to a Direct Debit Installment Agreement.

To convert a regular installment agreement to a Direct Debit Installment Agreement:

Call us today for more details. You will speak to either a Board Certified Tax Attorney, CPA or Former IRS Agents.

About Michael Sullivan

Michael Sullivan is Former Award Winning IRS Agent and Teaching Instructor with the Internal Revenue Service. Mr. Sullivan worked in the local, district and regional offices of the IRS. Mr. Sullivan has been in private practice since 1982 and is a tax expert in the field of Federal and State Tax Resolution. Connect with Michael Sullivan on Google+

View all posts by Michael Sullivan →
This entry was posted in Tax Advice, Tax Help and tagged CPA, Tax Attorney. Bookmark the permalink.

Call We Can Solve Your Tax Problem Immediately!

Member Of NSA, FICPA, NAEA, Better Business Bureau Accredited Business

: Home: The Firm: Tax Solutions: FAQs: Testimonials: Media Center: Press Releases: IRS Forms: Blog: Contact:
: Site Map: Privacy Policy:

: Immediate Representation: Received IRS Letter: Remove IRS Wage Garnishment: Remove IRS Bank Levy: Installment Agreements:
: Release Tax Liens: Unfiled Tax Returns: Negotiate Offer in Compromise: Innocent Spouse: Settle Payroll Liability / 941:
: Apply for Hardship Status: Large Dollar Cases: 165 Theft Loss Tax Deduction: Owe 401k IRS Taxes: Christian Tax Professionals:
: IRS Tax Audit: Florida Sales Tax Problems: Florida Tax Attorney: Income Tax Return Preparation:

 

Fresh Start Tax provides solutions to your IRS Tax Problems in South Florida including the Palm Beach, Broward and Miami-Dade Counties and the cities of:
Miami, Fort Lauderdale, West Palm Beach, Weston, Plantation, Boca Raton, Delray Beach, Hallandale, Deerfield, Pompano

Now providing Tax Solutions to Highlands County including Sebring

*Mr. Sullivan has been in private practice since 1982 in South Florida which gave roots to Fresh Start Tax LLC.
The firm began as Sullivan & Powell PA and through the years transitioned to its now current form.

All attorneys are retained by separate engagement on all tax cases to maintain attorney client privilege.
They have the option if retaining fresh Start tax LLC by engagement or on certain cases by use of a Koval letter.
Should you have any question you can speak directly to the attorneys or lawyers themselves.
Anthony M. Verni is admitted to practice law in the state of New Jersey and licensed as a certified public accountant in the state of Illinois.
Ed Vecchio and Scott Szaro are no longer with the company and are pictured on our site.

Disclaimer: No Rendering of Advice - The information contained within this website is provided for informational purposes only and is not intended to
substitute for obtaining accounting, tax, or financial advice from a professional accountant. Presentation of the information via the Internet is not intended
to create, and receipt does not constitute, an accountant-client relationship. Internet subscribers, users and online readers are advised not to act upon this
information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for
the purpose of avoiding penalties under U.S. federal tax law.

Accuracy of Information - While we use reasonable efforts to furnish accurate and up-to-date information, we do not warrant that any information
contained in or made available through this website is accurate, complete, reliable, current or error-free. We assume no liability or responsibility for any
errors or omissions in the content of this website or such other materials or communications. Call Fresh Start Tax at 954-492-0088.

Disclaimer of Warranties and Limitations of Liability - This website is provided on an "as is" and "as available" basis. Use of this website is at your own risk.
We and our suppliers disclaim all warranties. Neither we nor our suppliers shall be liable for any damages of any kind with the use of this website.

Links to Third Party Websites - For your convenience, this website may contain hyperlinks to websites and servers maintained by third parties. We do not
control, evaluate, endorse or guarantee content found in those sites. We do not assume any responsibility or liability for the actions, products, services and
content of these sites or the parties that operate them. Your use of such sites is entirely at your own risk.

© 2014 Fresh Start Tax : All Rights Reserved :