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Tax lien

Removing A Tax Lien From Your Credit Report in 5 Steps

Removing A Tax Lien From Your Credit Report in 5 Steps

By on Nov 15, 2018 in Tax lien | 0 comments

One black mark on your credit report can ruin your chances of owning a home or getting a car for years. You shouldn’t have to carry a tax lien on your credit report after you’ve already settled your problems with the IRS. Unfortunately, many credit agencies will continue to carry a strike against you after everything is said and done.   The good news is that following these steps can go a long way toward restoring your good name.   Removing Liens from Your Report in 5 Steps    1. Make All Payments to the IRS   Make sure you’ve sent in all relevant payments to the IRS. Assuming that you’ve been on an installment plan you’ll need to have paid it all off before you’re able to proceed. Once you’ve paid it off, the IRS will automatically send you forms 668(Z) and 668(Y) so you can prove everything has been paid off. If you’ve entered into a payment agreement and are now in relatively good standing with the IRS, then you can even have a federal lien removed before the debt is paid off in full.    2. Make a Lien Withdrawal Request   Fill out Form 12277 and check the box that reads the withdrawal of the lien is in the best interest of both the taxpayer and the government. You’ll need to file this form with a brief explanation for the basis of the withdrawal request. You’ll also want to write a cover letter that includes all the important information in regards to your request for the lien to be withdrawn. If the lien shows up on your spouse’s credit report too, then you’ll want to include both of your taxpayer ID numbers.    3. Confirm that Your Request has been Granted   The IRS will notify you in a couple of weeks or so if the lien has been withdrawn. Assuming that all went well, your information will now be removed from county records. In some cases, the credit bureaus will pull information from these records and automatically remove it. If you get IRS form 10916(c) in the mail, then you’ll want to make copies of it just in case.    4. Dispute the Lien...

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What is a Tax Lien and Can You Prevent Getting One on Your Assets?

What is a Tax Lien and Can You Prevent Getting One on Your Assets?

By on Apr 16, 2018 in IRS, Tax lien, Tax relief | 0 comments

If you are in the unfortunate situation of being unable to pay your tax debt to the Internal Revenue Service (IRS), it is possible that they can make a legal claim against your property.  This is called a tax lien. A tax lien does not mean that the IRS will actually seize your property. It simply ensures that the IRS gets the first right to your property before any other creditors. You should be aware that a tax lien can show up as a public record on your credit report, which can (as you might imagine) hurt your credit score. Once a tax lien has been filed, it can be very difficult to remove.  While the IRS will release the lien within 30 days of a fully paid tax debt, it may take much longer for the credit bureau to remove it from your credit report. How to Avoid a Tax Lien The best way to prevent a tax lien is to pay your tax debt off to the IRS in full as soon as possible. Here is a detailed list of options that could help you avoid a tax lien. Installment Agreement:  An installment agreement allows you to pay your debt to the IRS over time rather than in one large lump sum. This works very much like a credit card where you pay a monthly amount to the IRS over the course of several years.  In addition to the actual tax debt owed, you will also be responsible to pay interest and penalties, but the bottom line is that this agreement will give you more time to pay the total amount you owe. Offer in Compromise:  An Offer in Compromise (OIC) can be granted from the IRS if you are unable to pay the full amount due. You will have to present your case to the IRS proving that you are unable to pay. You’ll need to produce financial documents and submitting a detailed application.  If granted, an Offer in Compromise can allow you to settle your tax debt for less than you owe. Tax Support: It is very important to understand that you should never ignore letters or other correspondence from the IRS about your tax debt....

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Requesting a Tax Lien Withdrawal From the IRS

Requesting a Tax Lien Withdrawal From the IRS

By on Jan 14, 2018 in State Tax Lien, Tax lien, Tax Problems | 0 comments

A tax lien is one of the most damaging things you can possibly have on your credit report. In addition to the government having first rights to your property, and the ability to seize and sell it to pay off your tax debts, your credit score can really take a hit, making it difficult (if not impossible) to borrow money for a car loan, mortgage or even to apply for a line of credit.  Once you have been served with a tax lien from the IRS, this information will show up as a public record on your credit report with serious long-term implications.   Impact of a Tax Lien   You can request a tax lien withdrawal from the IRS, and this step might help you protect your credit score. The first thing that you should know is that paying your tax debt is the best way to get this process started.  If you’re unsure how you will be able to do this, consider requesting an installment agreement from the IRS, so that you can pay your debt off over time, rather than in one lump sum. If you have suffered a financial hardship, you may want to also consider applying for an Offer in Compromise, which allows you to pay your debt off for less than you actually owe. Once you have paid your tax debt off, the IRS will automatically release a tax lien within 30 days of your final payment. The Fresh Start Initiative   The IRS’s Fresh Start Initiative has made it easier to request a tax lien withdrawal in order to help taxpayers get back on their feet. Currently to request a withdrawal, which removes the public notice of a Federal Tax Lien, you must have paid the tax debt and be in compliance for the past three years in filing (all individual returns, business returns, and information returns) and be current on your estimated tax payments and federal tax deposits, as applicable.  In addition, you can now request a withdrawal if you have entered into or converted your regular installment agreement to a Direct Debit installment agreement. In this situation, you must owe $25,000 or less, and you must pay the full amount...

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How to Appeal an IRS Tax Lien

How to Appeal an IRS Tax Lien

By on Dec 25, 2017 in Tax lien | 0 comments

A tax lien is one of the most serious steps the IRS can take for individuals or businesses with unpaid back taxes.  If you receive written notice of a tax lien, the government has essentially placed a claim on your property, and the IRS gets the first right to seize your property over any and all other creditors. A tax lien will be in place until your tax debt is paid off.  It is important to note that a lien does not mean that the IRS will actually seize your property, but a tax lien can negatively impact your credit report, making it very difficult to obtain any type of loan including a mortgage, auto loan, new credit card, etc. Is Appealing a Tax Lien an Option For You? A tax lien can cause havoc on your day to day life, especially as it relates to your financial stability.  If you have received a notice of tax lien from the IRS, you may wonder if there is any way to appeal it. While not easy, here are some steps you can take if you want to appeal: Hearing: When you receive the notice of tax lien, you are also given the opportunity to request a hearing. Your request for a hearing MUST come within 30 days after the lien has been received. The lien will reach you within 5 days of it being filed, so your deadline is actually 30 days after the 5th day that the lien was filed. The bottom line for you is to act fast.  You can use IRS Form 12153 to request an appeal. Collection Due Process Hearing : In order to appeal your tax lien, you should ask an IRS manager to review your case, or request a Collection Due Process hearing with the IRS Office of A The strongest cases for appeal are generally ones that can prove one of the following circumstances: Your taxes were paid in full BEFORE the lien was filed; There was an error made in the process of filing the lien; You were in the bankruptcy process when the lien was filed, meaning that you should have received an automatic stay; The statute of limitations had already expired on...

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