Requesting a Tax Lien Withdrawal From the IRS
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 in 60 months, and have made 3 consecutive direct debit payments (in addition to several other similar requirements).
Act Now to Request a Tax Lien Withdrawal
If you have received notice of a tax lien from the IRS, the time to act is now. Waiting – even one more day – will only make your financial situation worse. To ensure that you complete the correct paperwork and provide the documentation necessary to give you the best possible chance of receiving a withdrawal of a tax lien, you may decide that partnering with a tax firm may take some of the stress away. Success Tax Relief specializes in working directly with the IRS to resolve difficult and complex tax situations. Let our team help you get back on your feet – contact us at 877-825-1179 to schedule a time for a free consultation.