How To Remove Federal Tax Lien If You Still Owe IRS

October 12, 2020
Written by: Fresh Start Tax

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If you do not have the money to pay your federal tax lien off the IRS has options for you to remove or withdraw the federal tax lien if you can make a regular installment agreement on a debit plan.

 

Yep, real good news.

As a former IRS agent, I can tell you the federal tax lien is crippling.

Not only does it affect your credit scores, lines of credit, and interest rates, it  basically cripples your financial life. Several years ago the IRS made changes in their procedures to remove or withdraw your federal tax lien if you can enter certain type of payment agreement that have certain characteristics about them.

Please find below how you make that happen. If you need help with your former IRS agents and managers and tax experts in the area

You can ask IRS to Withdraw o your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement.

General eligibility includes:


a. 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)
b. 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)
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 are in full compliance with other filing and payment requirements
e.  You have made three consecutive direct debit payments
f. You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.

There you go, follow the above and you are good to go.

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