How to Get Rid of a Federal IRS Tax Lien 1-866-700-1040
There are different ways to get rid of a federal IRS tax lien. As former IRS agents and managers we know all the techniques and solutions to get rid of the federal IRS tax lien.
You should call us today for free initial tax consultation and hear with the most affordable and quickest solutions that are available to you to get rid of your federal IRS tax lien.
We are comprised of tax attorneys, CPAs, and former IRS agents and managers who have over 60 years with the Internal Revenue Service.
We are true tax experts on IRS federal tax lien relief.
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New Procedure to Get Rid of a Federal IRS Tax Lien – Fresh Start Notice of Federal Tax Liens Program
Finally, an Increase in the Notice of Federal Tax Lien filing threshold.
IRS Files Federal Tax Liens when liabilities exceed $10,000.
The brand new Fresh Start changes increase the IRS Notice of Federal Tax Lien filing threshold from $5,000 to $10,000.
Notices of Federal Tax Liens may still be filed on amounts less than $10,000 when circumstances warrant.
The IRS will not retroactively apply the new $10,000 lien notice filing threshold and automatically withdraw a previously filed lien.
You may request a federal tax lien withdrawal after the lien has been released.
The IRS may now issue a withdrawal of a filed Notice of Federal Tax Lien after the lien has been released. If you wish to have the Notice of Federal Tax Lien withdrawn, you must request the withdrawal in writing.
Use Form 12277, Application for Withdrawal (PDF). In item 11, Reason for requesting withdrawal, check the last box,
“The taxpayer, or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the taxpayer and the government.”
Generally, eligibility requirements are:
a. Your tax liability has been satisfied and your lien has been released,
b. You are in compliance for the past three years in filing,
c. All individual and business returns,
d. All information returns,
e. You are current on your estimated tax payments and federal tax deposits, as applicable.
Before the Internal Revenue Service will withdraw federal tax lien it will verify the above compliance measures to absolutely ensure it is in the best interest to withdraw that IRS Federal Tax lien.
You must make sure the aforementioned general eligibility requirements are met.
Notice of Federal Tax Lien withdrawal after entering into a Direct Debit installment agreement. Major change!
If you are a qualifying taxpayer and meet the eligibility requirements, you may have your filed Notice of Federal tax 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 11, “Reason for requesting withdrawal,” check the third box , “The taxpayer is under a Direct Debit Installment Agreement.“
Qualifying taxpayers are:
1. Individuals,
2. Businesses with income tax liability only,
3. Out of business entities with any type of tax debt.
Eligibility Requirements are:
a. The current amount you owe must be $25,000 or less,
b. 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,
c. Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier,
d. You must be in full compliance with other filing and payment requirements,
e. You must have made three consecutive direct debit payments,
f. You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien,
g. You cannot have defaulted on your current, or any previous, direct debit installment agreement.
If you are currently on a regular installment agreement, you may convert to a Direct Debit Installment Agreement.
What is a Federal IRS Tax Lien
A federal tax lien is the 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:
a. Assesses your liability,
b.Sends you a bill that explains how much you owe (Notice and Demand for Payment); and,
c.You neglect or refuse to fully pay the debt in time.
The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.
Other Ways to Get Rid of a IRS Federal Tax Lien
1. Paying your tax debt in full is the best way to get rid of a federal tax lien.
The IRS will release your federal tax lien within 30 days after you have paid your tax debt.
Other Tax Options: When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.
1. Discharge of property — Allows property to be sold free of the lien.
The seller or buyer can submit Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF).
2.Subordination — Does not remove the lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage.
For more information review Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien (PDF).
3.Withdrawal — Removes the public notice and assures that the IRS is not competing with other creditors for your property.
If applying for a withdrawal, use Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (PDF).
How a IRS Federal Tax Lien Affects You
All Assets. A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
Credit. Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
Business. The lien attaches to all business property and to all rights to business property, including accounts receivable.
Bankruptcy. If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
How to Get Rid of a Federal IRS Tax Lien – Former IRS Agents/Managers – IRS Tax Lien Relief
