Federal Tax Lien Information / Resource from IRS.gov appear below:
A Notice of Federal Tax Lien is a public
document. It is filed to alert creditors that the
government has a legal right to your property.
594, The IRS Collection Process (PDF).
How to Get Rid of a Lien
your tax debt - in full. The IRS releases your lien within 30
days after you have paid your tax debt.
When conditions are in the best interest of both
the government and the taxpayer, other options for reducing the
impact of a lien exist.
Discharge of property
A "discharge" removes the lien from
specific property. There are several Internal Revenue Code (IRC)
provisions that determine eligibility.
783, Instructions on How to Apply for Certificate of Discharge
From Federal Tax Lien (PDF) .
"Subordination" does not remove the
lien, but allows other creditors to move ahead of the IRS, which
may make it easier to get a loan or mortgage.
784, Instructions on How to Apply for a Certificate of
Subordination of Federal Tax Lien (PDF).
A "withdrawal" removes the public
Notice of Federal Tax Lien and assures that the IRS is not
competing with other creditors for your property; however, you are
still liable for the amount due.
12277, Application for the Withdrawal of Filed Form 668(Y), Notice
of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF)
Two additional Withdrawal options resulted from
the Commissionerís 2011 Fresh Start initiative.
One option may allow withdrawal of your Notice
of Federal Tax Lien after the lienís release. General
Your tax liability has been satisfied and your
lien has been released; and also:
- You are in compliance for
the past three years in filing - all individual returns,
business returns, and information returns;
- You are current on your
estimated tax payments and federal tax deposits, as
The other option may allow withdrawal of your
Notice of Federal Tax Lien if you have entered in or converted
your regular installment agreement to a Direct Debit installment
agreement. General eligibility includes:
- You are a qualifying
taxpayer (i.e. individuals, businesses with income tax
liability only, and out of business entities with any type of
- You owe $25,000 or less (If you owe more than
$25,000, you may pay down the balance to $25,000 prior to
requesting withdrawal of the Notice of Federal Tax Lien)
- Your Direct Debit Installment Agreement must
full pay the amount you owe within 60 months or before the
Collection Statute expires, whichever is earlier
- You are in full compliance with other filing
and payment requirements
- You have made three consecutive direct debit
- You canít have defaulted
on your current, or any previous, Direct Debit Installment
Purchase Money Mortgages, Purchase Money Security
The application processes can become involved and
the use of an experience of a Tax Attorney can be very
beneficial to achieving proper resolution, in a timely manner.
Please call and discuss your
Call in your TaxSOS today.