Steps to Take for Removing Tax Liens from the IRS
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A tax lien release is generally granted when back taxes have been paid.
This is the IRS or State’s claim to your assets. This does not become public record until the IRS or State files a lien notice that is available to your creditors. A tax lien can have significant impact on a taxpayer’s ability to get credit. Moreover, it can ultimately lead to aggressive collection actions by the IRS or State tax authorities if a resolution isn’t worked out.
How Tax Lien Release or Removal Service Works
Typically, a lien is not released until taxes are paid back in full. However, the IRS and some states realize that a tax lien can hurt a taxpayer’s ability to pay off taxes owed because a tax lien on a credit report often leads to difficulties in obtaining a job, renting, getting a car loan, mortgage, and so forth. As a result, in 2011, the IRS announced a new set of initiatives to help taxpayers get back on their feet. These IRS changes included increasing the tax liability threshold for which tax liens are issued from $5,000 to $10,000. Furthermore, the IRS became more lenient with regards to releasing tax liens and made the process of withdrawing or expunging the tax lien from public records faster.
Our tax experts will analyze your tax, financial and personal situation and come up with a variety of alternatives that can be used depending upon your situation. Below are a few of the options we may present to you depending upon your situation.
- Direct Debit Installment Agreement (DDIA)
- IRS didn’t file correct procedures
- Offer in compromise
- Partial payment installment agreement
- Currently not collectible:
The IRS made it easier to release and withdraw a tax lien if a taxpayer owed less than $25,000 and sets up a DDIA. If you enter into this type of payment plan or installment agreement, your taxes will be automatically debited from your account on a monthly basis.
If we find that the IRS didn’t follow the appropriate procedures before filing a lien, we can file to have the notice of lien removed.
If you are struggling financially, it is a possible that you may qualify for an offer in compromise where taxes can be settled for a fraction of what is owed. The tax lien will be released once a settled amount is agreed upon and paid by the taxpayer.
If you cannot pay the required monthly payment with an installment agreement then you may qualify for a partial payment installment agreement. Under this agreement, it is likely that taxes will not be paid back in full prior to the expiration of the statute of limitations. The lien will remain in place until either the taxes have been paid off in full or the statute of limitations has expired.
- This option puts a hold on tax collection activities. If a taxpayer does not have enough funds to make payments towards the debt the taxing authorities will wait until their financial situation improves before collecting. At times, the statute of limitations on the debt expires before the taxes are paid and the debt is forgiven. The lien will generally remain in place. However, there are specific situations whereby you scan be released if it can be shown that the existence of the lien will hurt your ability to pay back the taxes owed.
Why Use Us To Release Your Tax Levy?
In conjunction with finding your best option to getting your tax lien released, our experts will also analyze your situation to see if you qualify for a reduction in taxes in any other way. Our experts have experience with dealing with federal tax liens as well as state tax liens. We will work on your behalf so you do not need to talk directly with taxing authorities. Our tax professionals are experts at navigating the complex tax system and negotiating with taxation authorities.