Rush Tax Relief - Federal Tax Lien Discharge Requirements

If you’ve read our recent blog posts like Rush Tax Relief – Federal Tax Lien and How to Avoid a Federal Tax Lien, you’re starting to see that receiving a Notice of Federal Tax Lien from the IRS is no laughing matter. A lien placed against your property or other assets can cause troubles when trying to sell or refinance your home, and if left unattended, a Federal Tax Lien may turn into a levy, which will then allow the IRS to seize the assets that the lien has been placed against.

As we’ve been discussing, a Notice of Federal Tax Lien is one of those situations where the recipient may want to consider Rush Tax Relief services. These expedited tax resolution services can help taxpayers to avoid increasing debt in the form of additional fees or penalties, or worse, the aforementioned levy scenario, where the IRS can seize the taxpayer’s assets.

In our most recent blog post, Rush Tax Relief – Federal Tax Lien Discharge, we discussed one of the possible options available to taxpayers who have received a Notice of Federal Tax Lien: the Federal Tax Lien Discharge. In this post, we’ll discuss what the requirements are to apply for the Federal Tax Lien Discharge and how to do so.

Federal Tax Lien Discharge Requirements

As we state on our Tax Lien Discharge Service Page, “in order to be eligible for a Tax Lien Discharge you must provide the IRS with proof that you are able to protect their interest. There are a number of forms you must fill out displaying the appraised value of the property, a description of the property and a basis for the discharge. 

“There are a number of reasons that the IRS may approve your property for discharge including:

  • Proof that you have other valuable assets attached to the lien.
  • You are able to sell your property and provide the proceeds to the IRS.
  • You are able to prove that the value of the property is worthless to the IRS. For example, if you owe more on the property than an appraisal says it’s worth.
  • You are capable of paying the IRS an amount equal to the interest they have on the property.”

As you can see, a Federal Tax Lien Discharge is most likely not the end of your journey with the IRS, as, in most cases, they will only approve a Federal Tax Lien Discharge if you are able to pay them money or leverage other assets in return. On the same Tax Lien Discharge Service Page, we continue on to say that “you will still owe the tax debt as well as any interest or fees attached to the debt to the IRS, even if your property is approved for the discharge. In addition to still owing the debt, the discharge only applies to the specific property named on the certificate, any other property attached to the lien will remain attached and subject to levy if the tax debt is not paid.”

That’s why it is so important that if you are struggling with tax debt, or have received a Notice of Federal Tax Lien, that you reach out to a team of qualified tax resolution specialists, like the one at Bullseye Tax Relief, right away. We can be reached by phone at (844) 582-3323 or by email at info@bullseyedebtrelief.com.

In our next blog post, we’ll talk about another option taxpayers have when it comes to addressing a Federal Tax Lien – Federal Tax Lien Subordination.

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