If you haven’t paid the amount of taxes owed or filed tax returns, the IRS can file a Notice of Federal Tax Lien against you. You may be forced to sell your property to settle your debt, and might find it difficult or impossible to obtain any type of credit. The IRS has also made your tax problems public record. You can get relief from a federal tax lien, but you need an experienced and knowledgeable tax resolution professional to protect your rights.
When the IRS lien becomes part of public record it can severely impact your financial situation. Once the IRS lien is recorded, credit bureaus are notified, which can impact your ability to sell or buy a car, buy property, file bankruptcy, get a credit card, lease a home, and even find employment.
How to get a release of tax lien from the IRS?
There are only a few ways to have an IRS tax lien released. These include:
- Pay the past due tax bill in full.
- Negotiate an acceptable Offer of Compromise
- Statute of Limitations expiration
- Possibly though a discharge in Bankruptcy
- If the lien was filed by mistake, file a Collection Due Process Hearing to have the lien removed.
What is a tax lien withdrawal?
Under certain circumstances when you may not quality for a tax lien release, you may still qualify for a tax lien withdrawal. A tax lien withdrawal revokes the public tax lien record and can be requested either after your tax debt is paid or through the IRS Fresh Start Program.
Few experiences can be as stressful as dealing with the IRS and facing the prospect of an IRS tax lien. The good news is you don’t have to face this battle on your own. Michael C. Whelan JD CPA will help you dispute the amount of taxes the government says you owe, propose a compromise settlement, present an installment agreement, or apply for non-collectible hardship status to avoid the tax lien. Contact us today for a consultation.