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How To Get Federal Tax Liens Removed

Updated: Aug 10

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How to get federal tax liens removed...

How to remove federal tax liens in Arlington, TX
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How To Get Federal Tax Liens Removed:


Facing a federal tax lien can feel like navigating a maze with no exit. Tax liens, imposed by the IRS when you fail to pay your tax debts, can complicate your financial life and hinder your credit score. However, removing a federal tax lien is possible, and understanding the process can make it less daunting. Here’s a step-by-step guide to help you navigate the path to lien removal.


Understand Your Lien:


First, ensure you know exactly what the lien entails. A federal tax lien is a legal claim against your property due to unpaid taxes. It’s crucial to review the notice you received from the IRS to confirm the amount owed and the lien's specifics. One thing we see time and time again is that taxpayers come to us after having received notices for months from the IRS. The conclusion, do not ignore notices from the IRS.


Resolve the Tax Debt:


The most straightforward way to remove a tax lien is to pay off the debt in full. Once you’ve cleared the outstanding balance, the IRS will release the lien within 30 days. To avoid future complications, confirm that the IRS has recorded the release of the lien by checking your credit report or contacting the IRS directly.


Negotiate a Payment Plan:


If paying the debt in full isn’t feasible, consider setting up an installment agreement. The IRS may agree to release the lien once you’ve established a consistent payment history. Keep in mind that while an installment agreement helps, the lien may remain until the full debt is paid. But consistently making payments (and making progress on your debt) will make them more likely to withdraw the lien while there is still debt outstanding.


Apply for a Lien Withdrawal:


In some cases, you might qualify for a lien withdrawal, which removes the lien from public records but does not erase the underlying debt. To request a withdrawal, you must:

  • Be current on all your tax obligations.

  • Have made arrangements to pay off your debt (e.g., an installment agreement).

  • Request the withdrawal formally by submitting IRS Form 12277, “Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.”



How to have a federal tax lien removed
Federal Tax Lien Help

Request a Lien Discharge:


If you’re selling property encumbered by a lien, you may request a lien discharge. This removes the lien from specific property, making it easier to sell. File IRS Form 14135, “Application for Certificate of Discharge of Property from Federal Tax Lien,” and include details about the property and the sale.


Consider an Offer in Compromise


Finally, for those unable to pay their tax debt in full or through installments, an Offer in Compromise (OIC) might be an option. This allows you to settle your debt for less than the full amount owed. If accepted, the IRS will release the lien once the terms of the OIC are fulfilled.


Conclusion


Ultimately, removing a federal tax lien requires time and patience, but with the right approach and persistence, you can regain control of your financial future. Whether you pay off the debt, negotiate a settlement, or seek professional guidance, understanding your options is the key to moving forward with a clean slate.


If you do find yourself dealing with federal tax liens, don't panic; you're not alone! Reach out to your premier tax resolution experts at Liberty Tax Defenders and we can help you resolve your IRS issues.


Don't forget to reach out to us today for a FREE consultation!


To your success!



P.S. Make sure you get your FREE copy of our SPECIAL REPORT: "The 7 Secrets The IRS Does NOT Want You To Know!" (simply click on the link in the previous sentence, scroll down to the second section of our home page, and download your copy today!)


Or, email us at:  info@libertytaxdefenders.com for your FREE copy.




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