NOTICE OF FEDERAL TAX LIEN: If you got the "Notice of Federal Tax Lien" letter in the mail, questions are whizzing through your mind. "Will this affect my credit?" and "Can I get the Lien removed?" are just a couple that I'll cover.
Will the IRS remove the Tax Lien if I pay just a little per month?
NO. This is a huge misconception. In reality, it's incredibly difficult to remove a Tax Lien. The Tax Lien will remain, even when you pay in monthly installments.
Will the Notice of Federal Tax Lien affect my credit?
Yes. That's because the Notice of Federal Tax Lien is really a document that notifies your creditors about your IRS Tax Debt. It can devastate your credit report.
"I owe the IRS. What can I do to prevent them from filing a Tax Lien?"
The Tax Lien may exist before you know your Tax Debt exists! The assigned Revenue Officer makes a determination 30 days from when it's assigned to them. So preventing the Tax Lien is impossible. The "Notice of Federal Tax Lien" simply notifies your creditors about the Tax Lien.
But a Tax Lien is an Enforcement Action, don't they have to stop Enforcement Actions if you're paying or if you file for bankruptcy
The IRS does not consider filing the Notice of Tax Lien "Enforcement Action," they're not enforcing anything. Therefore, if it's not enforcement action, the removal of it is nearly impossible.
Is there ANYTHING I can do to release my Tax Lien?
The circumstances are very narrow. The Tax Lien that’s already in existence needs to get released based on agreement to the IRS. A Tax Lien that has been filed is NOT coming off. The only ways to remove it are:
-Pay debt in full
-The Debt Statutes expire
-Post a bond. Once you post a bond the lien will be released. This is highly unlikely way to settle though because if you can post a bond, then you can probably pay the back taxes owed and you wouldn't need a bond. I've never seen this happen- but it's in the book. So it's possible. Hypothetically.
Also, if you have a piece of valuable property, give them the deed and MAYBE the Tax Lien will be removed
"Will the IRS Subordinate my Tax Lien so I can get a home equity loan and pay my debt?"
"Subordination" is the wrong service. Not being able to get a home equity loan because of Tax Lien shows the IRS that you might not have the best credit. Many people that have excellent credit, save for the Tax Lien, can still get the loan. Additionally, if the IRS releases the Tax Lien, they feel you won't have incentive to use the loan to pay them back. In most cases, the IRS won't release the lien so you can get the loan.
Final Bit- I HAVE been able to use my knowledge as a former IRS Hitman to work with the system and prevent a Notice of Federal Tax Lien from being filed. This means there's a small glimmer of hope if you choose to work with a professional. Just keep in mind, Tax Liens collect millions for the IRS just by sitting silently at the court house. The IRS is not going to give them up without a fight!
1 week ago
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1 comments:
Well,
Sometimes there arises some severe condition where the owner of the property will not be able to pay the property Tax liens that are required to be paid. When this problem arises the owners of the properties become delinquent. Once if the delinquency has been recognized, then the in charge of collecting the property taxes will be upon the appropriate governing authority. Then the appropriate governing authority will collect the tax by tax auction or through tax sales.
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