OPTIONS FOR TAX LIEN RELEASE

 

Usually, the IRS releases a lien once the taxes are paid back in full. However, it is understood that sometimes a lien itself can damage the taxpayer's ability to pay off taxes.

There are several other ways a lien might be released:

  • Direct Debit Installment Agreement (DDIA): This is a type of payment plan that automatically debits your taxes from your account monthly. The IRS may release or withdraw a tax lien if you owe less than $25,000 and choose a DDIA payment plan.

  • Incorrect filing procedures by the IRS: In some cases, the IRS did not follow procedure prior to filing a lien. If this is the case, the notice of lien may be able to be removed.

  • Offer in Compromise (OIC): Once an amount is settled upon and paid, the lien may be released.

  • Partial payment installment agreement: This agreement means that since the amount will likely not be fully paid off before the statute of limitations is expired, the lien will remain until the taxes are fully paid off or until the statute of limitations is expired.

HOW TO APPLY FOR A WITHDRAWAL OF A NOTICE OF FEDERAL TAX LIEN

 

If you failed to pay your tax debt to the Internal Revenue Service (IRS), a Notice of Federal Tax Lien may have been filed. This Notice serves to make your creditors aware of the tax debt that you owe the IRS. When such a Notice is in place, it may be difficult to use, sell, or refinance these assets effectively. Fortunately, there are options available to you in order to have this Notice removed. To apply for a withdrawal of the Notice of Federal Tax Lien, you must complete these forms:

  1. IRS Form 12277, Application for Withdrawal of Filed

  2. Form 668(Y), Notice of Federal Tax Lien

INFORMATION NEEDED TO REQUEST A WITHDRAWAL

 

Once you know which form must be filed, your next step is to fill in all of the requested information. In order to complete this form, you will need to provide the IRS with the following information:

  1. Your name, address, and phone number

  2. Your social security number

  3. A copy of the Notice of Federal Tax Lien

  4. If you do not have a copy of the Notice of Federal Tax Lien, the serial number of the Notice, the date it was filed, and the recording office where it was filed, to the extent available to you

  5. The current status of the federal tax lien

  6. Your reason for requesting the withdrawal, including supporting information to substantiate your request

Once you have filed the form, the IRS can notify other interested parties of its approval upon your request. This request must be sent in writing and it must include the names and addresses of the credit reporting agencies, financial institutions, or creditors that you would like the IRS to notify.

CALL FOR PROMPT RESPONSES & TAX ADVICE TAILORED FOR YOU

To find out if an offer in compromise might be a good solution for you, get in touch with our experienced Oklahoma tax lawyers. We are known for our thorough and comprehensive customer service. You can expect prompt responses and updates throughout every step of your case.

Don't wait to get started on your case. Contact us today.