The IRS has relaxed some rules for federal tax liens. Under
the Fresh Start initiative, the IRS has introduced the following changes:
- The IRS has increased the filing threshold from
$5,000 to $10,000 in tax debt.
- The IRS may now issue a withdrawal of a filed
Notice of Federal Tax Lien after has been released.
- The IRS may withdraw a Notice of Federal Tax
Lien after a taxpayer enters into Direct Debit Installment Agreement.
With these relaxations, the damage a tax lien causes on the
ability to take credit will be reduced, as the IRS may withdraw the lien notice
after releasing a lien. It must be noted that the IRS retains the power to file
a tax lien even on tax debt amounts less than $10,000.
As always, the quickest method to get a tax lien removed is
to pay the entire amount of tax debt. After the payment, the IRS releases a
lien within 30 days.
A federal tax lien can be attached to property, vehicles,
securities etc. and to future assets acquired during the lien of an individual
taxpayer. A federal tax lien can be placed on business property, and accounts
receivable of a business.
Taxpayers must try to avoid a lien because of the difficulty
of getting it removed. Getting placed into a tax debt payment plan to resolve
tax debt or simply paying the tax debt in full can help avoid a lien.
Labels: IRS, IRS Notices, IRS Tax Lien, Tax News, Taxpayers