Stop the Filing of a Federal Tax Lien – IRS Policy 5-47- Former IRS Agents

Stop the Filing of a Federal Tax Lien – IRS Policy 5-47- Former IRS Agents

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Stop the Filing of a Federal Tax Lien – IRS Policy 5-47 Policy




Call us today and learn how you can Stop the filing of the federal tax lien. 1-866-700-1040.

The IRS filed close to 1 million federal tax liens last year literally destroying the financial lives of those taxpayers. IRS has a policy regarding the filing of those federal tax liens and for taxpayers who have had a lien filed against him is best to find out whether IRS violated any procedures through this process.


IRS Policy Statement 5-47


Notices of  Federal Tax Lien generally filed only after a taxpayer is contacted in person, by telephone or by notice:.

A notice of Federal Tax  Lien shall NOT be filed, except in jeopardy assessment cases, until reasonable efforts have been made to contact the taxpayer.


Those contact points can be: person,

2. by telephone,

3. or by a notice sent by mail,

4.delivered in person or left at the taxpayer’s last known address, to afford him/her the opportunity to make payment.

IRS should have all pertinent facts and should carefully consider  the filing of the notice of lien may adversely affect the taxpayer’s ability to pay and thereby hamper or retard the collection process.

The truth be told, IRS does a very poor job in their attempts to contact taxpayers. Once the lien letter is sent out to the taxpayer  and letter goes ignored the IRS’s computerized system automatically files the federal tax lien..

That’s why it is critical when you receive IRS notices, letters ,or bills that you contact IRS so you can stop the notice of Federal tax Lien filing. Taxpayers who fail  to contact the IRS will be in jeopardy of having their credit ruined by the filing of the federal tax lien.

I cannot stress enough how important it is to contact IRS while you are in your billing cycle.


How to reverse the process – Collection due process procedures

CDP procedures are available to you if you’ve received any one of the following notices:

Notice of Federal Tax Lien or a Notice of Federal Tax Levy

Should the IRS file a federal tax lien there is a procedure that is available all taxpayers for IRS to reverse the process of the filing of the federal tax lien.


CDP Procedure


You have 30 days to request a hearing to preserve your right to go to Court.
Complete Form 12153, Request for a Collection Due Process or Equivalent Hearing
It is important you identify all your reasons for your disagreements.
The completed Form 12153 should be sent to the same address that is shown on your Lien or Levy Notice.

If your request is not received within 30 days, you are still entitled to an Appeals hearing. However, if you still disagree with the Appeals determination you.


If a Federal Tax Lien is already filed there are ways to get the Lien Released



1. Make sure you truly owe the tax and that the assessed tax is the correct amount.

Do not always assume that what the IRS says you owe is correct. Compare your tax records with the actual IRS notice. If you did not file your own tax return, the IRS may have filed a substitute for return, called a  SFR.

The amount the IRS assesses is  on the SRF’s are much higher because they only give you the standard deductions.

When this happens, complete a correct tax return and send it to:


Fresno Campus ASFR
Unit Stop 81304
PO Box 24015
Fresno, California 93779

This unit of the IRS processes the tax return now filed by the taxpayer.

In the filing of the new tax return, send a cover letter asking for a ” tax reconsideration”. This could take up to 3-5 months.

2. Pay the tax in full as soon as possible.

This is the quickest way to release the Federal Tax Lien. If you pay with a cashier’s check, the IRS will immediately release the Federal Tax Lien if you walk into a local office.

Make sure you get a copy of the  federal tax lien release and find out when the IRS will send a copy to your local courthouse. You will also want to check with all  the credit agencies within 30 days to make sure they posted the satisfaction of release of the federal tax lien on your credit report.  Remember there are three major credit reporting agencies and you want to check all three of them.

3. File an Offer in Compromise under Doubt as to Collect Ability.

Pay off the terms of the Offer in Compromise and the IRS must release the Federal Tax Lien once the Offer is paid in full and all the terms are met.

4. Find out if the statute of limitations has expired on the tax years involved.

The IRS has a 10 year period of time in which they must collect the taxes.  ( there are exception s to the 10 years, so ask us for details)

The 10 year period starts when the IRS makes on assessment on the IRS computer. This is usually 6 weeks after the returns are filed. If the statute period has expired, the lien is automatically released by statute, but a release will not be sent out by the IRS. You will have to formally ask them for a copy of the release.

If you want a hard copy of the release of federal tax lien after the statute has expired, fax your request to:


IRS Centralized Lien Releases
Fax # 859-669-3805


5. Apply for a surety bond.

The cost of the bond is very expensive, but the IRS will release the Federal Tax Lien once the bond is given to them. A bond is usually as much as the payoff of the federal tax lien. For certain taxpayers this may be the way to go especially those in the construction industry.

6. Do not let the Federal Tax Lien be filed in the first place. When the Notice of Intent of Filing is sent to you, call the IRS and ask for a hearing. This will at least delay the possible filing of the Federal Tax Lien. You may give them reasons why the filing of the lien should not take place.

7. If there are special circumstances that would cause a hardship because of the filing of the Federal Tax Lien, let the IRS know of the situation

IRS Hardship situations can change the circumstances of most cases. The IRS will give due consideration for certain conditions.

8. Contact the Taxpayer’s Advocates Office if you believe there is something wrong with the filing and you want the IRS to look into the situation.

The Taxpayer’s Advocates Office is there for you. Go to for the nearest office.

9. If you realized you made a mistake on your own tax return and the liability is incorrect, file an amended tax return so the IRS can correct the issuance of the Federal Tax Lien.

As a follow up note, the Federal Tax Lien is very damaging to your credit score. Most lenders will not lend with the presence of the Federal Tax Lien. Do your best never to have the Federal Tax Lien filed.

Stop the Filing of a Federal Tax Lien – IRS Policy 5-47- 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+

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