IRS Tax Liens - How To Release Them

by Mary King⁽¹⁾
http://www.floridataxlawyers.com/

While IRS Tax Liens are not as serious as a levies, they are a warning shot across the bow and if action is not taken to satisfy the IRS, a levy or wage garnishment may be in the works. A lien will prevent a property owner from selling their home until the amount in question has been paid, or the lien has been removed by a court order. The way it works is should the property owner sell their property, the IRS will take the money owed from the amount from the sale. Obviously this will keep a property owner from choosing to sell any property with a tax lien.

New tax laws set in place in 2011 have made tax liens somewhat easier to remove. If the taxpayer owes less than $25,000 and is able to set up an installment agreement or other solution with the IRS, they may release the lien.

Below are several other ways under the law a taxpayer can have a lien released from their property. The first is obvious but unlikely to be a solution for most: Pay the total amount owed. Naturally for most taxpayers with a lien, if they could afford to pay the entire amount owed, they would have done so. However may people do not realize they can use credit cards to pay the IRS. A taxpayer may be able to use a combination of credit cards cash and loans to pay the IRS. This is advisable if possible because in general the amount of interest generating from back taxes will be higher than a reasonable credit card or other loan.

Another more likely path is to enter a payment plan or so called, installment agreement with the IRS. An installment agreement will allow a taxpayer to pay monthly payments on their tax debt, the restriction is the payments need to cover the total amount owed within three years. This time restriction will keep a limit on how small of a monthly payment an be agreed upon. It should also be noted once in any sort of agreement or compromise with the IRS, failure to make a payment may nullify the agreement. A direct debit arrangement with the IRS can allow the taxpayer to have the lien on their property released.

Filing for an Offer In Compromise can also be a way to have the IRS release the tax lien. It should be noted however only a small percentage of taxpayers with back taxes actually will qualify for an offer in compromise. The process of negotiating an offer in compromise can be a lengthy and complicated ordeal and it is highly recommended an experienced tax attorney is hired to work with the IRS on your behalf. Upon successful offer in compromise the tax lien should be released, again should the taxpayer fail to make the agreed payments the offer in compromise could be nullified and the IRS will resume collections efforts.

As in many court actions you may file an appeal to dispute the lien. The must provide taxpayers written notice of the lien within 5 days of it being filed. On the written notice will state a Notice of Right To Request A Hearing. This allows the taxpayer 30 days from the notice to appeal the lien. This strategy should thought through and only attempted if you have a realistic chance of winning the appeal. One consequence of appealing the lien is that the appeal will be recorded on your credit report as such it is advised to consult a tax attorney for the best options prior to taking action.

Tax liens like any IRS problem can be complicated, frustrating and time-consuming to straighten out. It is highly recommended that you do not go it alone when confronted with this issue. Hire an experienced tax attorney and they may be able to quickly arrange a workable agreement that results in removal of the lien from your assets.

Sarasota Tax attorney Mary King has been helping clients get tax debt relief by negotiating currently non-collectible status, offers in compromise, installment agreements, and other tax settlements. IRS Tax Lawyer Mary King has years of experience obtaining favorable tax settlement agreements with the IRS for her clients

Article submitted Thursday, February 09, 2012 & read 2 times.

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