How to Release a Federal Tax Lien
With a Federal IRS tax lien, there are a few ways to actually release it. A tax lien can be detrimental to your credit making it very difficult for you to borrow, sell your house, get a credit card, car loan etc.
Here are few things to keep in mind to release a tax lien, but it is recommend you reach out to tax resolution firm.
1. Wait until the statute of limitations expires. After 10 years the IRS can no longer collect back taxes. It may sound like a good idea to wait for as long as possible, but the IRS usually will not let this happen. Instead, they will enforce a tax levy to get their money.
2. Pay what you owe. The best way to release a federal tax lien is to pay the entire amount of money owed to the IRS. As soon as you do this the lien will be released.
3. IRS Payment plan. More specifically, look at an IRS Installment Agreement. The IRS knows that you may not have the money to pay all your back taxes. That being said, you can opt for a payment plan which allows you to have your lien released as long as you promise to send money every month until you debt is satisfied.
4. Offer In Compromise. This is a way of settling your back taxes for less than you owe, and subsequently having your federal tax lien released. The IRS does not settle with anybody who asks and this form of settlement is difficult to obtain. You have to apply for an Offer In Compromise. If it is accepted your lien will then be released.
5. Appeal process. If you feel that the lien is unfair you have the right to appeal it by requesting a hearing, but if the IRS disagrees, you will need to come to some resolution by using the 4 steps above.
Here are few things to keep in mind to release a tax lien, but it is recommend you reach out to tax resolution firm.
1. Wait until the statute of limitations expires. After 10 years the IRS can no longer collect back taxes. It may sound like a good idea to wait for as long as possible, but the IRS usually will not let this happen. Instead, they will enforce a tax levy to get their money.
2. Pay what you owe. The best way to release a federal tax lien is to pay the entire amount of money owed to the IRS. As soon as you do this the lien will be released.
3. IRS Payment plan. More specifically, look at an IRS Installment Agreement. The IRS knows that you may not have the money to pay all your back taxes. That being said, you can opt for a payment plan which allows you to have your lien released as long as you promise to send money every month until you debt is satisfied.
4. Offer In Compromise. This is a way of settling your back taxes for less than you owe, and subsequently having your federal tax lien released. The IRS does not settle with anybody who asks and this form of settlement is difficult to obtain. You have to apply for an Offer In Compromise. If it is accepted your lien will then be released.
5. Appeal process. If you feel that the lien is unfair you have the right to appeal it by requesting a hearing, but if the IRS disagrees, you will need to come to some resolution by using the 4 steps above.
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