Need to release a Federal or State Tax Lien? Call Fresh Start Tax at 1.866.700.1040. We are top Professionals in the tax industry with a highest BBB rating.
Our staff is comprised of Board Certified Tax Attorneys, CPAs, Enrolled Agents and former Managers with the Department of Revenue Sales Tax Division.
The professional staff at Fresh Start Tax are some of the leading industry experts and can give you the best and fastest advice to help you resolve your tax issues. Lien releases are not that easy and many people or businesses do not qualify for them up front. There are many rules and regulations that govern the release of the Federal and State Liens.
Many times, the liabilities must be paid in full before the release can take place. Each situation is different. It would be in your best interest to hire a professional firm to get you through this.
Here are some of the general rules that apply:
Releasing a Lien
A Release of the Notice of Federal Tax Lien will be issued:
- Within 30 days after you satisfy the tax due (including interest and other additions) by paying the debt or by having it adjusted, or
- Within 30 days after acceptance of a bond that you submit, guaranteeing payment of the debt.
In addition, you must pay all fees that a state or other jurisdiction charges to file and release the lien. These fees will be added to the amount you owe.
Usually 10 years after a tax is assessed, a lien releases automatically if it has not been filed again. If the IRS knowingly or negligently did not release a Notice of Federal Tax Lien when it should have been released, you may sue the federal government, but not the IRS employees, for damages.
Payoff Amount
The full amount of your lien will remain a matter of public record until it is paid in full, including all accruals and additions. However, at any time you may request an updated lien payoff amount to show the remaining balance due by calling the toll-free customer service telephone number at 1-800-913-6050. An IRS employee will issue you a letter with the current amount that must be paid before the Notice of Federal Tax Lien is released.
Applying for a Discharge of a Federal Tax Lien
If you are giving up ownership of property, such as when you sell your home, you may apply for a Certificate of Discharge. Each application for a discharge of a tax lien releases the effects of the lien against one piece of property. Note that when certain conditions exist, a third party may also request a Certificate of Discharge. If you’re selling your primary residence, you may apply for a taxpayer relocation expense allowance. Certain conditions and limitations apply.
Making the IRS Lien Secondary to Another Lien
In some cases, a federal tax lien can be made secondary to another lien. That process is called subordination.
Withdrawing Liens
By law, a filed notice of tax lien can be withdrawn if:
- The notice was filed too soon or not according to IRS procedures,
- You entered into an installment agreement to pay the debt on the notice of lien (unless the agreement provides otherwise),
- Withdrawal will speed collecting the tax, or
- Withdrawal would be in your best interest (as determined by the Taxpayer Advocate), and in the best interest of the government.
We will give you a copy of the withdrawal, and if you write to us, we will send a copy to other institutions you name.
Lien Inquiries
If you have questions regarding basic lien inquiries such as routine lien releases and lien payoff amounts, contact the Centralized Lien Unit by calling the toll free telephone number (1-800-913-6050).
When faced with a complex lien issue, consider contacting the Collection Technical Services (TS) Advisory function. TS Advisory is a collection compliance function that interacts with taxpayers on complex lien issues such as: Certificate of Discharge, Subordination, Subrogation, Non-Attachment, Withdrawal and other complex lien issues.
Appealing the Filing of a Lien
The law requires that you be notified in writing not more than 5 business days after the filing of a lien. You may be given this notice in person, it may be left at your home or your usual place of business, or sent by certified or registered mail to your last known address. You may ask an IRS manager to review your case, and you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a hearing with the office listed on your notice. You must file your request by the date shown on your notice.
Some of the issues you may discuss include:
- You paid all you owed before the lien was filed,
- The lien was filed when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
- A procedural error was made in an assessment,
- The time to collect the tax (called the statute of limitations) expired before the lien was filed,
- You did not have an opportunity to dispute the assessed liability,
- You wish to discuss the collection options, or
- You wish to make spousal defenses.
At the conclusion of your Collection Due Process hearing, the IRS Office of Appeals will issue a determination. That determination may support the continued existence of the filed federal tax lien or it may determine that the lien should be released or withdrawn. If you disagree with Appeal’s determination, there is a 30-day period starting with the date of determination, in which you may request judicial review in a court of proper jurisdiction.
Our firm has an A plus rating with the Better Business Bureau and are leaders in the tax industry. 1-866-700-1040