If you’re falling behind with your federal tax payments, or you have already defaulted and the Internal Revenue Service (IRS) has filed a lien against you, you should consult a tax lien attorney. The best tax lawyers will help you figure out ways to get tax lien released so that you can keep your property and also get access to credit.
How to Get a Tax Lien Released
The most straightforward process to get tax lien released is by paying your due taxes in full. Within a month, the IRS will release the tax lien on your property after you settle your tax obligations in full. However, you may not have the funds to settle your tax debts in full. This is where a tax lien lawyer comes in handy. Your tax attorney will guide you through the other ways of getting your lien released. These are the other alternatives that your tax lien lawyer can help you pursue to get a tax lien released such as:
1. Negotiate a Favorable Offer of Compromise With the IRS
When your financial situation is dire, your tax attorney can help you negotiate an IRS offer in compromise and reach an agreement with the IRS. This agreement is between you and the IRS, and it allows you to pay less than you owe. Before agreeing on an offer of compromise, the IRS considers many factors such as your assets, age, annual income, and the state of your current health. The best tax attorney in Chicago will help you leverage these and other factors so that the IRS deems you eligible for an offer of compromise. Additionally, your tax attorney will work hard to get the IRS to accept an amount that you can manage to settle within a set period.
2. Direct Debit Installment Agreement
This is another way that you can use to get tax lien released by the IRS. This is a payment plan that you can agree with the IRS, that allows the IRS to directly deduct a certain amount of money from your bank account every month. The amount is channeled towards settling your outstanding text debts. A tax lien attorney will help you negotiate with the IRS so that the amount agreed upon is fair. You don’t want the IRS to take almost all of your monthly income such that you have to incur additional debt to meet your monthly expenses.
3. File a Collection Due Process Hearing
In some cases, the IRS may file a tax lien against you by mistake or fail to follow the correct procedures. Given that the IRS processed about 155 million individual taxpayer returns in 2018, the IRS may file a lien by mistake. In case this has happened to you, you should find a tax lien attorney to help you file a collection due process hearing. This is the official process to get your lien removed if it was filed by mistake, or you are in dispute of the amount owed. To fast-track the hearings and get the lien released fast, you should trust a tax lien lawyer who knows the ropes.
4. Statute of Limitations Expiration
When your tax debt passes the legally set collection dates, the IRS should release the lien on your property. The statute of limitations is a law that dictates the amount of time that your debt is legally enforceable. After the time has elapsed, the IRS can’t force you to pay your tax obligations. A tax lawyer is best suited to help you know if your tax debt has passed the collection statutes, and have the IRS remove the lien.
Your best shot to get tax lien released is by consulting a tax lien attorney in Chicago. You don’t have to lose your property or be barred from accessing credit, because of a lien on your property. A tax lien lawyer will help you pursue all the ways possible to get tax lien released by the IRS.