We are a full service tax firm specializing in IRS tax problems. We have over 65 years of combined IRS work experience, since 1982.
If you need a physical copy of the release of Federal tax Lien call us today.
We are the affordable professional firm that can walk you through this process.
What You Need to Know
As a former IRS and teaching instructor, I have found that most taxpayers do not understand that the federal tax lien is self releasing after its statutory time after collection periods have expired.
At the end of the 10 year normal collection statute, federal tax liens are self releasing.
Most people or parties have a hard time understanding what this is. This simply means that IRS no longer has an enforceable right to collect a tax debt.
The Internal Revenue Manual
8.21.5.1.2 (04-20-2012) Collection Statute Expiration Date
1. IRC 6502 provides that the length of period for collection after assessment of a tax liability is 10 years. Each tax assessment has a Collection Statute Expiration Date.
2. Any tax assessed on or after November 6, 1990, is collectible for 10 years from the date of assessment.
Previously, the collection statute ran for a 6 year period. Any tax assessed on or before November 5, 1990, on which the former 6 year statute of limitations had not expired on November 6, 1990, is collectible for 10 years from the date of assessment.
Once a tax liability is assessed, the statute of limitations for collection begins to run. The expiration of the collection statute ends the Government’s right to pursue collection of a liability.
Can the Collect Period Be Extended?
Certain things can extend the normal tenure statute of limitations. Examples can be the 1. filing of the bankruptcy,
2. Certain litigation with the IRS,
3.CDP’s or the filing of a collection due process or,
4. the signing of a 900 waiver
The Self Releasing Lien
5.12.3.4.1.1 (07-15-2015) Self-Releasing Lien
1. NFTLs filed on Form 668(Y)(c), Notice of Federal Tax Lien, show a “Last Day for Refiling.”
Language on the form states that if the NFTL is not refiled by that date, the lien shall be considered to be released.
This is known as a self-releasing lien.
Note: The self-releasing language was incorporated into Form 668(Y) in December 1982.
In very rare situations, you may encounter a NFTL filed prior to that time.
Although such a NFTL would not have been self-releasing, it still required timely refiling to maintain its effectiveness.
Any such NFTLs that continue to be identified as active by the local recording office should be researched and addressed accordingly.
2. The primary reason for the self-releasing statement is to provide an efficient means to notify third parties that the lien is no longer enforceable. The self-release clause meets the 30-day requirement to release a lien. When the “Last Day for Refiling” passes and no refile has been done, both the statutory lien and the NFTL are immediately released.
3. A certificate of release is not systemically issued for self-releasing liens. there are ways to actually get a paper release of lien by calling us.
We are an affordable solution if you need a hard copy of the release of Federal tax Lien.
A. If the taxpayer requests a certificate of release and the underlying liabilities have been satisfied or are no longer enforceable, then a certificate of release should be issued and we can get these and achieve this for you.
PLEASE NOTE : If the “Last Day for Refiling” is not specified on the NFTL, the self-release provision is not in effect and a certificate of release must be issued when the CSED expires.
Call us today for free initial tax consultation and speak to a true expert.
