Tax Lien Removal
TAX LIEN REMOVAL
A tax lien is a public legal notice that the IRS or state has a formal claim against the asset named in the lien, whether bank account, real estate, equipment, or any other valuable asset. The lien puts the IRS if first possession to levy your property. This makes it very difficult, to sell the asset to a third party.
The IRS does make mistakes. There are some legitimate ways to remove a tax lien.
You can get the IRS to remove Notice of Federal Tax Lien if you can show that the IRS was in the wrong. A lien can be removed with tax resolution on appeal if:
- The tax debt has already been paid in full.
- The lien was filed in error.
- The lien was filed in error and the IRS made a processing error with your return.
- The IRS did not follow proper procedures.
- You were going through bankruptcy when the lien was filed.
- You weren’t given a chance to dispute the amount assessed by the IRS.
- You wish to make spousal defenses by claiming that your spouse should be liable for the lien.
- You want to discuss collection options, like through the Fresh Start Initiative.
- The statute of limitations of 10 years on collecting the tax debt has passed.
DMG Tax Relief can deal with the IRS or state and provide assistance with filing an appeal, or requesting a lien withdrawal.
The withdrawal of a lien removes the lien as if it was never there, and occurs when the taxpayer’s lien is paid off, or it’s proven that the lien was filed falsely. Withdrawal is also possible if you qualify for the Fresh Start Initiative, have entered a direct debit agreement, and your balance is lower than $25,000.
A lien that’s been “released” means that it’s no longer attached to your property and assets, and public records will reflect the change.
Lien removal can also be a subordination, which allows another creditor to “subordinate” the IRS or state’ interest in a property and move ahead of the line. The IRS or state will only permit this if it’ll help them get paid more or sooner. For example: if you’re trying to refinance your home, the IRS or state will allow a lender to go above the lien and refinance in exchange for a cut of the proceeds.
It’s important to take action to avoid liens and to get them lifted as quickly as possible if they are attached to one or more of our assets.
If Selling your home or other property becomes a challenge. Through Offer in Compromise, Subordination and other methods, the tax experts at DMG Tax Relief can help you find relief from your IRS Tax Lien.