IRS Tax Liens: Free Expert Assistance!
Speak with Former IRS Managers and Agents with Over 15 Years of Experience
At Clarity Tax Resolutions, our expertise lies in the removal and release of federal tax liens. Our team of former IRS managers and agents provides practical and affordable solutions to help you regain your financial independence.
What is a Federal Tax Lien?
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. This lien protects the government’s interest in all your property, including real estate, personal property, and financial assets. A federal tax lien is established after the IRS:
- Assesses your liability;
- Sends you a bill (Notice and Demand for Payment) explaining how much you owe; and
- You neglect or refuse to pay the debt in full and on time.
The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.
Methods for Eliminating a Federal Tax Lien
Paying Off Your Entire Tax Debt
The simplest method for getting a federal tax lien removed is by paying your tax debt in full. The IRS will release your lien within 30 days after your debt has been paid.
Alternatives
When conditions are in the best interest of both the taxpayer and the government, other options to lessen the impact of a lien include:
- Property Discharge This permits the sale of property without any liens. For instructions on how to apply for a certificate of discharge from a federal tax lien, see Publication 783.
- Subordination Does not remove the lien but allows other creditors to take precedence over the IRS, making it easier to obtain a loan or mortgage. Refer to Publication 784 for instructions on how to apply for a Federal Tax Lien Certificate of Subordination.
- Removal (Withdrawal) Ensures that the IRS is not vying with other creditors for your property and removes the public notice. To withdraw the filed Form 668(Y), Notice of Federal Tax Lien, use Form 12277.
How Does a Federal Tax Lien Affect You?
- Assets A lien is placed on all your assets, including cars, real estate, securities, and any future assets you may acquire while the lien is in effect.
- Credit Your credit may be restricted after the IRS files a Notice of Federal Tax Lien.
- Business The lien attaches to all business property and rights thereto, including accounts receivable.
- Bankruptcy If you file for bankruptcy, your Notice of Federal Tax Lien, lien, and tax debt may endure.
Tax Levy vs. Tax Lien
Tax Lien
A lien secures the government’s interest in your property when you don’t pay your tax debt.
Tax Levy
A levy actually takes the property to satisfy the tax obligation. The IRS can levy, seize, and sell any type of real or personal property that you own or have an interest in if you don’t pay your taxes or make arrangements to do so.
How to Release Your Federal Tax Lien
If the IRS has filed a Federal Tax Lien against you for unpaid taxes, you likely received a copy of the Notice of Federal Tax Lien. The original recording of this lien was made public record when it was filed at the nearest courthouse to your residence.
Ways to release or remove a federal tax lien include:
- Full Payment of Overdue Taxes
- Successful Offer in Compromise Complete the terms and make all required payments.
- Expiration of the Ten-Year Statute
- Administrative Claim If the lien was filed in error, make a claim with the IRS to have it lifted.
Crucial Federal Tax Lien Contact Details
- Centralized Processing of Liens Call (833) 838-4410 for basic and routine lien issues, such as verifying liens, requesting lien payoff amounts, or releasing liens.
- Collection Advisory Group For complex lien issues such as discharge, subordination, subrogation, or withdrawal, see Publication 4235 for contact details of your local advisory office.
- Appeals Office You might be able to contest the filing of a Notice of Federal Tax Lien in certain situations. See Publication 1660 for more details.
- Taxpayer Advocate Service to speak with an independent IRS organization representative for support and advice.
- Centralized Insolvency Operation if you’re unsure whether filing for bankruptcy has affected your tax debt.
Take action now to resolve your tax lien. Contact Clarity Tax Resolutions for a free consultation with our team of former IRS agents and managers. We are here to help you navigate the process and regain control of your financial destiny.