Paying off tax debts is a fundamental obligation that everyone with a taxable income must fulfill within the timeline determined by the IRS. If a taxpayer neglects or fails to pay their tax debt, the IRS has the right to exercise a number of collection practices that include putting a lien on the defaulter’s income, bank accounts, and other assets. Although you can take the DIY route to resolve IRS tax lien, it is always advisable to consult an IRS attorney who specializes in handling tax problems. If you are wondering how to get assistance regarding a tax lien, this blog post is for you. Read on as we give you a brief guide on how to get assistance for a tax lien.
Collect All Financial Documents
Before acting upon a tax lien, taxpayers must do their homework. For the IRS to remove a tax lien filed under your name, they need legitimate proof that they made a mistake while processing your tax return. It is, therefore, essential to collect all financial documents. From your monthly income slips to the smallest of expenses, every financial document holds importance in proving your case. You can also seek professional help and hire an IRS tax attorney to make sure you don’t miss any detail when collating your financial information.
Check Filing History
There are a number of reasons why a tax lien can be filed under your name. The most common reason is noncompliance. If a taxpayer fails to file their tax returns and ignores the notices sent by the IRS, the tax authority can impose a tax lien. In such a case, it is essential to check your filing history and see whether you have missed filing any of your taxes or tax returns.
File an Appeal at the Office of Appeals
The IRS may make mistakes when processing your taxes and return, which can also lead to a tax lien. If, however, you can prove that there has been an error, you can appeal to the Office of Appeals. Keep in mind, all procedures offered by the IRS involve a hearing. It is, therefore, essential to make all arrangements and be fully prepared for the hearing, if necessary. You can either take the DIY way and represent yourself, or hire an IRS tax lien attorney to represent your case. Having said that, there are two common ways a taxpayer can remove a tax lien; release and withdrawal. We discuss the two ways, in brief:
For a lien withdrawal, taxpayers must have a bank balance lower than $25,000. To file for a withdrawal, use the Form 12277 to make a formal request to the IRS. Once the request is filed, the IRS responds with the Form 10916(c), which can hold the solution to your problem. If the IRS approves your request, not only the lien is removed, every thread that could show a tax lien was filed against your name is also removed.
If a taxpayer qualifies for the IRS Fresh Start Initiative (FSI), and has a bank balance lower than $25,000, they are eligible to request for the lien to be released. If the IRS approves the request, the lien is removed from the property and/or other assets. Unlike a lien withdrawal, releasing a tax lien will not remove it from a taxpayer’s credit reports; they can, however, consult their IRS tax attorney find ways to improve their credit report.
Talk to an IRS Tax Lien Attorney, Today!
Although the IRS provides a number of ways to help taxpayers resolve their tax issues, it is advisable to hire an experienced IRS tax lien attorney to guide the way. If the IRS has issued a tax lien against your property, it is essential to immediately take action to resolve the situation before it worsens. The IRS tax attorneys at the Law Offices of Nick Nemeth have extensive experience in addressing all sorts of IRS tax problems, including IRS tax liens. For a confidential, no-obligation consultation, simply call (972) 627-4580 or fill out our contact form.