Options to Remove a Federal Tax Lien + Help + Former IRS + Ft.Lauderdale

March 2, 2020
Written by: Fresh Start Tax

 

Fresh Start Tax

We are former IRS agents and teaching instructors with the Internal Revenue Service. We can answer any question you have about a federal tax lien problems. Help is right here

 

As former IRS agents we worked out a local, district, and regional tax offices of the Internal Revenue Service. We have over 200 years a professional tax experience and over 100 combined years working for Uncle Sam.

Call us today for free tax consultation or come by and visit our offices right here in South Florida

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Since 1982, we offer free initial tax consultations.We are A+ rated by the BBB. As has former IRS agents, we filed liens, release liens and taught federal tax lien law at the Internal Revenue Service.

If a federal tax lien has affected you in some way, we can give you various options to go ahead and resolve your federal tax lien problem. Help is right here in one click away.

 

What is a Federal 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 federal tax 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 places your balance due on their computer system and legally assesses your tax liability.

IRS MUST send you a bill that explains how much you owe and makes a Notice and Demand for payment and you neglect or refuse to fully pay the debt in time.

 

26 U.S. Code § 6321. Federal Tax Lien for taxes

If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person.

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.
The Removals of Federal Tax Liens

Paying your tax debt in full is the best way to get rid of a federal tax lien.

The IRS should release your federal tax lien within 30 days after you have paid your tax debt.

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

A “discharge” removes the lien from specific property. There are several Internal Revenue Code (IRC) provisions that determine eligibility. For more information, refer to Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien (PDF) and the video Selling or Refinancing when there is an IRS Lien.
Subordination

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. To determine eligibility, refer to Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien (PDF) and the video Selling or Refinancing when there is an IRS Lien.
Withdrawal

3. “Withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due. For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF) and the video Lien Notice Withdrawal.

There are two additional “Withdrawal” options resulted from the Commissioner’s 2011 Fresh Start initiative.

One option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release.

 

General eligibility includes:

1. Your tax liability has been satisfied and your lien has been released; and also: You are in compliance for the past three years in filing – all individual returns, business returns, and information returns;
You are current on your estimated tax payments and federal tax deposits, as applicable.

2. The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement.

You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)

You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
You are in full compliance with other filing and payment requirements,
You have made three consecutive direct debit payments,
You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.

 

How a Federal Tax Lien Affects You

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.

 

What s the difference between a Federal Tax Lien vs. IRS Tax Levy

A lien is not a levy.

A lien secures the government’s interest in your property when you don’t pay your tax debt.

A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.

 

Help Resources for Taxpayers dealing with a Federal Tax Lien

Centralized Lien Operation

To resolve basic and routine lien issues: verify a lien, request lien payoff amount, or release a lien, call 800-913-6050 or fax 855-753-8177.

Collection Advisory Group

For all complex lien issues, including discharge, subordination, subrogation or withdrawal; find contact information for your local advisory office in Publication 4235, Collection Advisory Group Addresses (PDF).

Office of Appeals

Under certain circumstances you may be able to appeal the filing of a Notice of Federal Tax Lien.

Taxpayer Advocate Service

For assistance and guidance from an independent organization within IRS, call 877-777-4778.

Centralized Insolvency Operation.

If you are questioning whether your bankruptcy has changed your tax debt, call 800-973-0424.

Need help for a federal tax lien,call the experts.

Options to Remove a Federal Tax Lien + Help + Former IRS + Ft.Lauderdale

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