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How to get a Federal Tax Lien released or removed!
Releases or removals of the Federal Tax Lien filed by the Internal Revenue Service
Almost all Federal Tax Liens filed by the IRS and your back taxes are filed by the IRS computer system. The Federal Tax Liens are systemically filed by the IRS and the computer system called “CADE’, Customer Account Data Engine.
The Federal Tax Liens are filed after a formal notice and demand was given or issued by the IRS. There are ways to remove or release the Federal Tax Lien on back taxes. Call us today.
The IRS must release your Federal Tax Lien when:
1. The liability is satisfied
2. The liability is unenforceable, the 10 year statute of limitation has expired;
3. A bond has been accepted by the Internal Revenue Service.
If the statute has expired on each of the tax years, the Internal Revenue Service will not issue a formal release of the federal tax lien.
The Service will tell you the lien is expired by statute. Unless you call them and ask for a formal release of the federal tax lien, a paper release will not be generated. It is very important to contact the credit bureau and make sure the released is picked up by each agency. You should check 30 days after the releases of the Federal Tax Liens.
“Unenforceable” means, as a matter of law it is no longer collectible.
Acceptance of a Bond by the Internal Revenue Service;
The bond must be executed by a surety company holding a certificate of authority from the Secretary of the Treasury, or, in the discretion of the area director, collateral may be accepted within established limits .
A listing of approved sureties is contained in Department Circular 570, Treasury’s Listing of Approved Sureties, which is available on the Internet at fms.treas.gov/c570. The acceptability of a surety, other than a Treasury approved surety, will be determined on a case by case basis.
Acceptance of an Offer in Compromise
1. When an Offer In Compromise has been paid in full, the Internal Revenue Service will issue a release of the federal tax lien on back taxes.
Cases involving the Trust Fund Penalties
Issue a Certificate of Release of Federal Tax Lien to the nonpaying officer(s) on a trust fund recovery penalty assessment when one officer has paid the liability in full. This will be done even though the liability has not been abated pending the expiration of the statutory period during which a claim for refund by the paying officer may be made.
Bankruptcy Discharge of One Party on a Jointly Filed Lien
When one party on a jointly filed federal tax lien files bankruptcy and is discharged.
A certificate of releases for the party discharged must be manually prepared. These are not systemic issuance’s. These are much harder to get the attention of IRS employees.
Innocent Spouse Determinations
The IRS through the IRC § 6015 grants relief to a spouse when it is determined that he or she is not responsible for the liability.
The IRS issues a release for the taxpayer who is not responsible for the liability.
With Full Payment an immediate release of the federal tax lien is given
When a taxpayer wants to pay the liability in full in order to secure an immediate lien release, IRS will do the following:
IRS will prepare Form 668(Z), Certificate of Release of the IRS Federal Tax Lien.
IRS will forward a copy of the Form 668(Z) to the correct unit. They will forward the copy by secure email including the date of the release, the reason for the release, and the name and badge number of theperson initiating the release. If unable to send this information via email, phone or fax the information to the lien release unit
IRS will provide Notice 48, Release of the IRS Federal Tax Lien, to the taxpayer.
IRS will advise the taxpayer that he or she must file the certificate and pay a recording fee if the release needs to be recorded immediately. The filing fee is different in each state.
The quick handling of this can be done through a professional company like Fresh Start Tax.
Certificate of the IRS Release of the Federal Tax Lien
Issue a Certificate of Release only after all assessments covered by the federal tax lien meet the criteria for release even though a certificate can be issued after each assessment is satisfied or becomes unenforceable.
If a specific request is received from a taxpayer for the issuance of a release of satisfied or unenforceable modules on federal tax lien recorded with multiple modules, forward the request for a partial release of the federal tax lien
