A tax lien can be incredibly difficult to deal with. Nobody intends to make the kinds of mistakes that would cause a tax lien to be levied against them or their business in the first place. Ideally, we would all love to receive refunds, not liens. In 2017 alone, 119,853,012 refunds were issued. Unfortunately, not all of us receive refunds, and some fail to pay their taxes in a timely manner. The issues surrounding taxes and tax liens can be incredibly complex, and it’s easier to make mistakes than you might realize. Essentially, a tax lien is imposed upon you by the government in order to ensure that you pay your taxes. A lien can seriously impact your financial future.
The question is, what can you do to get a tax lien released once it has been levied against you? Let’s find out.
1. Pay Your Tax Debt
The easiest way to ensure that your tax lien is lifted is to simply pay your tax debts. At this point, you may also need to pay penalties or interest along with your debt. In general, however, it is best to simply pay your debt as quickly as possible if you are researching “what can you do to get a tax lien released”. Of course, most of us just pay our tax debts outright if we can. Most of the time, people who fail to pay their tax debts in a timely manner are unable to suddenly clear their debts when a lien is issued against them.
2. Having the Lien Withdrawn
In some cases, a tax lien may be issued in error. If that occurs, you may be able to get the lien withdrawn by the IRS altogether. Notify the IRS immediately if you feel your lien was issued in error, and they will review your case.
3. Compromise
You may be able to work with the IRS to reach a compromise. This will allow you to have your lien removed through a payment other than the full debt owed. Compromises are individualized and must be discussed directly with the IRS.
When researching “what can you do to get a tax lien released” try not to be overwhelmed. This is a complex issue. Get in touch with us to discuss your options immediately!