How can you remove an IRS Tax Lien
Author : IRS Lien Help | Published On : 07 Sep 2021
Is your credit damaged? Are you facing troubles with selling or purchasing a home? Have you been unable to open new credit accounts or buy a car? If your answer is yes, you might have fallen victim to the IRS Tax Lien.
An IRS Tax Lien is where the IRS files a Notice of Federal Tax Lien against tax payers who have not been completely paying their taxes. The action is the attempt of the IRS to gather back taxes from the tax payers by putting a lien on the assets of those tax payers. The statutory lien that they file is public information and can be seen by the credit report agencies.
Liens can be on homes, which makes selling them hard. The IRS can also put liens on alimony, vehicles, furniture, computer, security and company receivables.
To solve this issue, you want to set up a payment arrangement and possibly make a settlement with the IRS to pay less.
The options that taxpayers that have to face a lien have include:
• Pay the tax: Once the tax owed is paid in full, the lien must be removed within 30 days and can also be erased from the credit report. The proof of payment is provided through an IRS certificate of Release of Federal Tax Lien. Remember that partial payments don’t lessen the amount of Notice of Federal of Tax lien. The amount should be paid in full to get rid of the Notice of Federal Tax Lien.
• Lessen the tax and pay through an offer in compromise: The IRS might decide that it is not worth their time and endeavors trying to collect the tax from you if you can’t repay it. In this type of situation, a repayment plan might be the way to go for your IRS tax levy. To submit an offer in compromise, offer a payment to the IRS which is less than the full amount owed, and the IRS will either reject or accept the offer. If the IRS accepts the offer, you can pay the smaller amount that you offered in the payment plans. As the offer in compromise should be well calculated and is not as easy as it sounds, a tax professional can assist.
To get started
If you want to get the total amount due on the lien, mail or call the IRS providing your name, phone number, address, SSN, and the date of amount on the lien should be calculated through. The IRS will send two payoff letters, one of which can be returned with your payoff amount that the IRS can put towards paying off your lien.
Be sure the lien is removed
If you have paid off your lien but don’t having a Certificate of Release, get directions on how to request one by visiting the IRS website and searching for Publication 1450. Keep a copy of the Release of Federal Tax Lien for your own records.