When you don’t pay your tax bill, the IRS or state can come after you to get their money. They will use whatever means necessary to get you to pay up, and they have a few different methods. They may send threatening letters, they can garnish your wages and bank accounts, and they can place tax liens on your personal property.
Why should you care if a lien is placed on your property?
If a lien is attached to your property, you can’t do much with that property until you pay off that lien. For example, if the lien is attached to your home, you can’t sell or refinance your house while that lien is in place.
Liens can be a burden, as they can put you between a rock and a hard place. The lien is meant to force you to pay your tax debt, but the lien also prevents you from using an asset to generate the money you need to pay your tax debt. The good news is that there are ways to get a tax lien released.
Three Ways to Get Your Tax Lien Released
Pay Your Tax Debt
The first way to get your tax lien released is the obvious answer of paying off your tax bill. If you can find other ways to pay your tax debt, such as liquidation of other assets, you may want to do so. Liens on your credit report aren’t a good look, and it’s best to get them removed as quickly as you’re able.
Discharge of Property
When you request the IRS to remove a lien from one property, this is known as a discharge of property. For instance, you can ask that they remove a lien from your personal residence because it may create an economic hardship for you. You will have to communicate with the IRS and file certain paperwork to receive a discharge.
Qualify for Withdrawal of a Federal Tax Lien
Finally, the IRS may allow the release of a lien if you have good cause and have been in good standing. There are many eligibility requirements in order to qualify for the release of a lien. For instance, you will need to be current on your IRS installment payments, and you must be in compliance with your other filings and payments.
Contact a Tax Lien Specialist
Sometimes people get behind on their taxes, and that’s understandable. Tax liens can be difficult to get released, but if you have good cause, it might be possible to get your lien released. Trying to handle tax issues on your own can be difficult, and you might be tempted to give up. Giving up doesn’t have to be your only option, though.
Reach out to a tax lawyer who can help you with lien releases and with other tax-related problems. Receive a free tax debt analysis when you contact The W Tax Group today. To speak with a tax specialist at our nationwide headquarters, call 877-500-4930 or complete the form located at the bottom of this page.