IRS Tax Liens
The IRS uses a tax lien to let the whole world know that you need to pay tax debt. Do you owe back taxes? Have you received a Notice of Federal Tax Lien? This is a life-altering situation. You and your family will be very affected with a tax lien. Your credit will be affected most of all. The lien will attach to your properties. A new home or a car will be out of the question because you won’t get the credit needed. Borrowing or selling against your assets also won’t be possible. It is the destruction of your credit.
The notice will that the IRS may file a notice of your tax debt in public records offices in counties where you work, live, and own properties in if you don’t settle your tax bill by a due date.
Before lien can be recorded, the IRS should send you a notice. Before the lien notice is filed in the public records office, you are given the opportunity to negotiate a settlement or pay the IRS. Avoiding a lien is the best choice.
You have the right to a hearing. You will be allowed to question the validity of the lien then. You may appeal to a federal district court or to the U.S. Tax Court if the hearing was unsuccessful.
Release of Tax Lien
- Declaring bankruptcy
- IRS agrees to an Offer in Compromise
- Statute of limitations expired (average of ten years)
- Settle back taxes in full
A Certificate of Release of Lien should be sent to you in 30 days. Make sure you get a certificate for each lien that the IRS filed against you. If you don’t get one, request in writing from the Chief of Special Procedures in the IRS branch where the lien was filed.
Your Credit Cleared
You’ll need to obtain your credit report from the credit reporting agencies. Check to see if your credit history was updated. If not, ask the agencies to contact the IRS or check the public records. Another option is to mail the agencies copies of the certificate(s). Please note that the placement of a tax lien may not be erased from your credit records for as long as ten years.
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