Tax Lien Withdrawal
What is Tax Lien Withdrawal?
You may be eligible for a Tax Lien Withdrawal if you have entered into a direct debit installment agreement or have come to some sort of an agreement regarding your tax debt with the IRS. 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. This means that the IRS is no longer in competition with other creditors.
How Can I Become Eligible for Tax Lien Withdrawal?
According to the IRS, there are two options:
OPTION 1: Lien has been paid off and released. According to the IRS, the criteria for this option is as follows:
OPTION 2: Direct debit installment agreement allows for the filing of a tax lien withdrawal.
This option allows you to file for a withdrawal if you have entered into a direct debit installment agreement or have converted your regular installment agreement into a direct debit installment agreement. According to the IRS, the criteria for this option is as follows:
The IRS provides other eligibility criteria to help you decide whether a tax lien withdrawal is the best option for you. Eligibility for this option begins with an application requesting a tax lien withdrawal from the IRS. According to the IRS, the following is a list of other criteria for eligibility:
In addition to meeting the above criteria, you must provide documentation to support the claim as well as a list of financial institutions that you would like to have notified of the withdrawal of the tax lien. Visit our page explaining our tax problem resolution services for more information.
What Is A Direct Debit Installment Agreement?
The key to most eligibility requirements is the entering into a direct debit installment agreement, even if you still have a tax debt. A direct debit installment agreement is simple: installment payments are paid directly from your bank. You can simply set this up online through the IRS website.
Applying for a tax lien withdrawal may be the best option for you if are wanting to sell your property and there is a public notice of federal tax lien on your assets, which renders them undesirable to buyers or creditors.
It is best to consult a tax professional to determine if this is the best option for your situation. A tax professional can assist you with the filing of the withdrawal of tax lien. Give us a call today to consult with a tax professional about your situation as to whether a Tax Lien Withdrawal is advantageous for you.