A Notice of Federal Tax Lien, which means that the IRS has placed a lien against some or all of a person’s assets, is a serious deal that demands immediate attention. If not handled in a timely and correct manner, a Federal Tax Lien can turn into a levy, which allows the IRS to collect the assets that the lien had been placed against. This is usually your home, property, car, or anything else of value.

In our recent posts, like Rush Tax Relief – Federal Tax Lien and Rush Tax Relief – Federal Tax Lien Options, we went into further detail about what a Federal Tax Lien is, as well as the different options a taxpayer has when it comes to handling and avoiding a Federal Tax Lien. In this post, we’ll discuss the desired outcome when someone has received a dreaded Notice of Federal Tax Lien, and that is the Federal Tax Lien Withdrawal.

Federal Tax Lien Withdrawal

According to the IRS’s page, Understanding a Federal Tax Lien, as of Dec. 24, 2020, a Federal Tax Lien Withdrawal “removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due.” As you’ve seen, we like to give people a little more information to work with than that, so on our Federal Tax Lien Withdrawal Service Page, we start by mentioning that “the IRS places a tax lien on property or assets when you fail to pay a tax debt. A tax lien withdrawal makes it easier to sell your property or assets if you have a federal tax lien placed on them as it removes the Public Notice of Federal Tax Lien from the asset in question thus making it so that the IRS is no longer in competition with other creditors.”

As we’ll show you in our next blog post, Federal Tax Lien Withdrawal: Eligibility Requirements, your eligibility to receive a Federal Tax Lien Withdrawal is based on several different sets of options, but ultimately, as we point out on our Federal Tax Lien Withdrawal Service Page, “much of the criteria for becoming eligible for a tax lien withdrawal while still carrying tax debt lies on entering a direct debit installment agreement. A direct debit installment agreement is simple, it is when you make installment payments directly from your bank. You can simply set this up online through the IRS website.”

Federal Tax Lien Withdrawal: Three Scenarios

As we mentioned above, and will go into more detail about in the next blog post, the IRS essentially provides for three scenarios when it comes to your eligibility for a Federal Tax Lien Withdrawal: 

  1. You’ve paid off the lien, or are willing to, and the lien has been released or will be
  2. You have entered, or are willing to enter, a direct debit installment agreement (and other requirements)
  3. The third scenario lists eligibility requirements if you’re unsure which option is better for your needs


In our next blog post, we’ll share the eligibility requirements for the three different Federal Tax Lien Withdrawal options. After that, we’ll start discussing another situation that might call for rush tax relief services – The Trust Fund Penalty.

Sources

https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien

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