A tax lien is usually imposed by law on a property to secure the payment of taxes. Therefore, you are probably wondering what can you do to get a tax lien released. You have probably delayed paying your income taxes or other taxes due to unavoidable reasons.
Therefore, you need to find a way to remove a tax lien that has been placed on your real estate or other property. A tax lien is stressing as its amounts are at times huge to fathom. Thus, it is vital to be a step ahead to be safe. Keep reading to get the answers to what can you do to get a tax lien released.
1. Apply for Lien Withdrawal
If you are sitting in your living room asking yourself what can you do to get a tax lien released, you should get up and start applying for lien withdrawal. This withdrawal will remove the public Notice of Federal Tax Lien.
You will still be liable for the debt, but the Internal Revenue Services (IRS) will stop competing for your home with other creditors. Work with a tax lien attorney to ensure that you go through all the processes carefully.
However, the IRS will determine if you qualify, but it is worth it to make the application. An excellent tip to qualifying for the withdrawal is keeping your outstanding balance under $25,000. When you are eligible, you will be needed to set a payment plan that you will abide by until you finish paying your debt.
It could take two to three months for the lien to be withdrawn, but once it has been removed, you should inform consumer credit reporting companies that had listed you.
2. Choose the Bank Levy Option
You can pay in installments as mentioned earlier, or you can have the payment debited directly from your bank account, a common procedure known as a bank levy. You are probably asking yourself what is a bank levy. A bank levy is a legal action that allows creditors to take the fund from your bank account.
The bank is then required to send a certain amount of money to your creditors within an agreed period. You need to work with a bank levy attorney to ensure that your entire account isn’t frozen.
A tax lien lawyer guarantees you the best treatment, and thus your property will not be entirely seized by the government. However, if you don’t want to take the bank levy option, you must find ways on how to stop a levy on your bank account. This is because the levy will be placed if you don’t take action, but the terms will be light if you make a move first.
A bank levy is usually viewed as a bad step, but if you work with a qualified bank levy lawyer, only a reasonable percentage will be taken from your account until the debt is paid.
3. Sell Your Home
Did you know that if you have enough equity in your home, you can sell it to release a tax lien? Well, once this house is sold, the sales proceeds to the IRS, and thus the next homeowner will receive the house when it is lien-free. Therefore instead of asking what can you do to get rid of a tax lien, you need to go out and look for a buyer.
After selling the house, present the documentation of the sale to the IRS. An IRS agent will then review your account history to ensure that you don’t have any other outstanding tax, and then he or she will prepare some paperwork and clear you.
This guide has given you answers to the question “what can you do to get a tax lien released.” The tips are practical, and thus you can be sure that they will tremendously help you. If you find yourself with the dilemma of what can you do to get a tax lien released, use these steps, and you will be happy.