The Best Way To Get An IRS Tax Lien Withdrawn
Updated: Jun 30
By: Brian Barto, EA
There are three prerequisites to a valid federal tax lien:
1. The IRS has assessed the tax liability;
2. The IRS has given the taxpayer notice of the amount assessed and has
demanded payment; and
3. The taxpayer has failed to pay the amount assessed within 10 days after
notice and demand.
The Notice of Federal Tax Lien (NFTL) is a public document filed to notify other creditors that the taxpayer owes money to the IRS and to let the creditors know that the IRS will be paid first.
Unfortunately, if you owe $10,000 or more, there is virtually nothing you can do to stop the filing of the NFTL. The best option is to contact the IRS and resolve the tax issue.
The federal tax lien is extremely powerful. The lien that arises attaches to all the assets
owned by the taxpayer at that moment or that the taxpayer has a right to in the future.
If you owe less than $25,000 or can pay off enough to reduce the debt to less than $25,000, you may be able to have your federal tax lien withdrawn. After your debt is paid down to less than $25,000, you must enter into a direct debit payment plan with the IRS (installment agreement) to pay off the remaining balance. After the third payment, you should file Form 12277 to request to have the Notice of Federal Tax Lien withdrawn. Other than this one exception, the Notice of Federal Tax Lien will remain in place while you are paying the tax debt.
At Tax Debt Resolution Services of Winchester VA, we help you eliminate your IRS issues and the stress the IRS has created in your life and help you get back to doing what you do best! We help our clients in Winchester, VA to resolve their tax debts! If you need assistance please feel free to contact me at 540-662-4432 or firstname.lastname@example.org.
24 Weems Lane
Winchester, VA 22601