Tax Liens

How To Remove a Tax Lien: 5 Essential Steps to Freedom

If you receive notice that you owe back taxes, it can be a stressful time. Not only do you have to try to come up with the payment and any penalties, but the governmental entity may place a lien on some of your assets. However, taking the steps required for removing a tax lien isn’t as daunting as it may seem at first glance.

One thing to note here at the outset: Do not ignore the tax lien, or the problem will worsen. Instead, you can take these five proactive steps to start the tax lien removal process.

How to Remove a Tax Lien the Easy Way

Let’s take a moment to carefully review each step involved in the process of removing a tax lien so that we can better understand the necessary actions to achieve freedom.

1. Pay Your Tax Bill

If you are not disputing that you owe the tax money, paying the tax bill is the easiest option for removing tax liens legally. 

If financial constraints prevent you from paying the full amount, you can ask the tax entity to allow you to pay via an installment plan. Setup fees, penalties, and interest charges may still accrue as you use this plan.

You also may consider making an offer in compromise, where you agree to pay a percentage of the tax bill you owe. If the taxing entity accepts the offer, this partial payment will fully satisfy your tax bill.

2. Appeal the Tax Bill

If you believe the tax bill is incorrect, you can file an appeal of the charges. Winning your appeal would be the best option for removing a tax lien, as you won’t owe any money or lose any property.

It’s not easy to appeal a tax bill on your own. If the taxing entity denies your appeal, you still need to pay. You may want to seek help disputing the tax bill to give the process the best chance at success. 

3. Discharge the Property

You can request a discharge if you want to sell a particular piece of property under the lien. This is a popular option for clearing tax liens from property, although the taxing entity doesn’t have to grant it.

When you sell the property under discharge, you don’t have to pay any of the proceeds to the taxing entity, which is highly advantageous.

4. Ask the Tax Entity To Withdraw the Lien

One of the tax lien release procedures you should consider is asking the tax entity to withdraw the lien. If you want to apply for credit using the property as collateral, and if this loan will help you pay the tax debt, a withdrawal is worth requesting.

Negotiating with the IRS to release a tax lien is not easy. Contact tax consultants for advice on negotiating a tax lien removal.

5. File for Bankruptcy

Filing for bankruptcy is another option. However, this doesn’t always eliminate your tax debt and liens. Before starting the process, take time to understand what happens to your tax lien.

Filing for bankruptcy can affect your financial life in multiple ways beyond taxes. Before filing for bankruptcy, you should consider all the ramifications of taking this step.

Trust Us To Help With Removing a Tax Lien

How do tax liens work? They allow a state or federal government to claim some of your assets to pay the taxes you owe. You don’t want to lose assets like your home to the taxing entity, which is why it’s important to take steps to remove tax liens.Trust Levy & Associates will guide you in removing a tax lien. We are ready to begin working on your case today. To answer your tax-related concerns and schedule a consultation, call us at 800-TAX-LEVY or contact us online.

Contact Levy & Associates for Dependable Tax Audit Services

Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.

There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.