New Tax Lien Rules Will Increase Your Credit Score!
Are you aware that the Notice of Federal Tax Lien can remain on your credit reports for as long as it takes you to pay it, plus an additional seven years?
When you full pay the tax liability that gave rise to the Notice of Federal Tax Lien, the Notice of Federal Tax Lien is “released” by the IRS. A Notice of Federal Tax Lien that has been “released” by the IRS stays on your credit report for an additional seven years from the date of “release.” A Notice of Federal Tax Lien that has been “withdrawn” by the IRS is immediately removed from your credit report.
The IRS will not “withdraw” a Notice of Federal Tax Lien that has been “released” due to a tax settlement through an “offer in compromise” or due to the expiration of the “collection statute.”
In the past, the IRS did not “withdraw” a Notice of Federal Lien that was “released” due to the full payment of the tax liability.
The general rule is that a Notice of Federal Tax Lien will be “released” upon satisfaction of the tax liability.
The general rules is that a Notice of Federal Tax Lien may be “withdrawn” for any one of the following reasons:
1. Where the filing of the Notice of Federal Tax Lien was premature or contrary to procedures,
2. Where the taxpayer makes a section 6159 installment agreement, and the agreement does not provide for filing the Notice of Federal Tax Lien,
3. Where the “withdrawal” facilitates collection, or
4. Where it would be in best interest of the taxpayer and the government.
If you have paid your tax liability in full, the IRS must “release” the Notice of Federal Tax Lien and it is done automatically by the IRS. Then it is up to you to request that the IRS “withdraw” the Notice of Federal Tax Lien.
Are you aware that when you have an unpaid tax liability and you enter into a “Direct Installment Agreement,” that you may request the withdrawal of the filed Notice of Federal Tax Lien?
When you enter into an installment agreement to satisfy the liability for which a Notice of Federal Tax Lien was imposed, you may request the “withdrawal” of the Notice of Federal Tax Lien.
To make your request to have the IRS “withdraw” the Notice of Federal Tax Lien, you must complete Form 1227 “Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien”. This form must be accurately completed, otherwise, your request will be denied. After your request has been approved, the IRS will issue Form 10916(C) “Withdrawal of Filed Notice of Federal Tax Lien.”
With our experienced personnel, we can review all of the facts and circumstances to make the most effective request on the Form 1227 to “withdraw” your Notice of Federal Tax Lien.
