IRS Tax Lien Removal
Not taking proper action with your taxes can lead to many problems including liens against your property. A federal tax lien gives the IRS a legal claim to your property as security or payment for your tax debt. These liens are a matter of public record and will appear on your credit report. This can lead to many financial problems including a reduced credit rating, inability to get a loan to buy a house or car, inability to receive a new credit card, or even sign a lease. Luckily, tax liens can be released under certain circumstances allowing you to regain the use of your credit.
A federal tax lien can only be released, discharged, subordinated, or withdrawn after the underlying tax liability has been fully satisfied. This can make it rather difficult to remove under normal circumstances.
Subordinating your lien occurs when your tax lien is made secondary to another lien. If you qualify for a direct debt streamlined installment agreement (i.e. the tax debt is less than $25,000) the lien may be withdrawn.
Our experienced tax professionals constantly conduct negotiations to release wage garnishments, bank account levies, and liens for our clients. We have proudly helped thousands of taxpayers over the years and will provide you with the expertise and compassion needed to help you get out of this difficult situation. Oftentimes, we can get a levy released in as little as 24 hours!
If you are suffering under a tax lien and need it released, contact us today. In your free consultation, we will review your case and establish a strategy for removing your lien.
Request your FREE Tax Relief Consultation
IRS Tax Lien Removal
The Internal Revenue Service (IRS) is responsible for collecting taxes and ensuring that taxpayers comply with tax laws. One of the ways they do this is by placing a lien on your property or assets if you owe back taxes. A lien is like a legal claim against your property, which means that the IRS has the right to take possession of it if you don’t pay your taxes.
What is a Tax Lien?
A tax lien is essentially a legal claim against your property or assets. It’s a way for the IRS to secure the amount of taxes you owe them until you pay it off. This means that if you sell the property, the IRS will get their money before you receive any proceeds. A tax lien can also affect your credit score and make it difficult for you to obtain loans or credit in the future.
How to Remove a Tax Lien
There are several ways to remove a tax lien from your property. The first is by paying off your tax debt in full. Once you have paid the entire amount owed, the IRS will release the lien within 30 days. You can also apply for a Certificate of Discharge, which removes the lien from a specific property. However, this does not release you from the tax debt itself.
Another option is to enter into an Installment Agreement with the IRS. This allows you to pay off your tax debt in smaller, more manageable payments over time. Once you have paid off the entire amount, the IRS will release the lien.
Requesting a Lien Withdrawal
If you are unable to pay off your tax debt or enter into an installment agreement, you can request a lien withdrawal from the IRS. This means that the lien will be removed from your property, but you are still responsible for paying off the tax debt. There are several criteria that must be met in order to qualify for a lien withdrawal, including:
- The tax debt must be $25,000 or less.
- You must be in compliance with all current tax filing and payment requirements.
- You must have made three consecutive payments towards your tax debt if you owe more than $25,000.
To request a lien withdrawal, you will need to complete Form 12277 and submit it to the IRS.
Hiring a Tax Professional
Removing a tax lien can be a complicated and time-consuming process, which is why many people choose to hire a tax professional to help them. A tax professional can help you understand your options and guide you through the necessary steps to remove a tax lien from your property. They can also negotiate with the IRS on your behalf and ensure that all necessary paperwork is submitted correctly.
Conclusion
If you have a tax lien on your property, it’s important to take action to have it removed. This can be done by paying off your tax debt, entering into an installment agreement, or requesting a lien withdrawal. Hiring a tax professional can make the process easier and increase your chances of success. Remember, even if the tax lien is removed from your property, you are still responsible for paying off the tax debt. It’s important to stay current on all tax filing and payment requirements to avoid future issues with the IRS.
Frequently Asked Questions About Tax Lien Releases (FAQ)
How long does it take to get an IRS lien release?
What is an IRS Federal Tax Lien?
How do I settle an IRS tax lien?
What does it mean to receive a Certificate of Release of Federal Tax Lien?
Some of Our Success Stories
Offer in Compromise& Lien Release
Edward was looking forward to retirement. Unfortunately, due to owing the IRS back taxes, most of his savings was gone. After ten years the IRS had drained his savings accounts for retirement. Edward was now afraid of losing his house. After negotiating with the IRS we were able to settle his tax debt for $45,300, a savings of $384,186.19.
After receiving the great news, Edward was relieved because now he could prepare for retirement, and be able to keep his house. He had many praises for Franskoviak Tax Solutions, P.C.
“John Foran was outstanding in handling my tax challenge with the IRS.” “Very professional company, with the interest of solving the clients challenges.”
“Franskoviak Tax Solutions, P.C. lowered my tax bill significantly – allowing me to keep my house.”
Offer in Compromise& Lien Release
Jason owns a tavern in northern Michigan and owed delinquent payroll taxes for 2009 to 2014 totaling to $228,990.08. The tavern’s peak business is during the high tourism summer months, with lulls during the cooler season. This created an issue with any payment plan that demanded large monthly payments due to less capital during the off-season. Making use of the IRS “Fresh Start Program” we were able to settle the tax debt of $228,990.08 to only $26,000, a settlement rate of 11%!
“It was successful; Franskoviak Tax Solutions, P.C. got everything done. It was a huge weight lifted off of my shoulders. It was very timely, everything was submitted right away. They were on top of it.” “Thanks for all your work! You guys rock!”
Offer in Compromise& Lien Release
Ray and his business owed the state of Michigan for back withholding and SBT taxes of over $113,810. We filed our Power of Attorney, contacted the state, and got the account corrected by reviewing the statute of limitations, and filing corrected returns. Settlement offer was accepted for $2,892, a savings of almost $111,000, and 3% of the original amount.
Offer in Compromise& Lien Release & Deliquent Taxes
Marvin came to Franskoviak Tax Solutions with several years of unfiled tax returns from 1999 through 2011. Our team of tax specialists first got him into compliance by filing the unfiled tax returns. We then requested a collection due processing hearing, so we could challenge the underlying tax assessments, and put an immediate freeze on IRS Collection efforts.
Lastly, we submitted an Offer in Compromise as a collection alternative. The IRS appeals officer accepted the Offer in Compromise of $7,641, on a total tax debt of $80,979. Marvin saved a total of $73,338; 90% of the original amount owed.
Marvin paid off the settlement amount immediately and the tax lien was released immediately. Marvin is now free of IRS tax debt and can expand his business without fear of IRS tax debt hanging over his head!
When we asked Marvin about his experience with the Franskoviak team, he replied “I was very happy with the amount that Mike and his team were able to negotiate for an IRS settlement.”