IRS Tax Lien with nick Nemeth
  • July 6, 2023
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A federal tax lien is one of the last things you would want to receive as a taxpayer. Under a tax lien, the IRS claims the rights to the defaulter’s assets, such as real estate, bank accounts, and vehicles. The lien may even limit the taxpayer’s ability to get credit in the future. Taxpayers, who file for bankruptcy, may still have to continue paying the lien. If you too have received an IRS tax lien, here are a few things that you need to know to find your way out.

The Options at Hand

When you are past the due date for tax payment, things can get much worse than you can ever imagine. In long overdue cases of non-payment, the IRS holds the right to claim the defaulter’s assets, both tangible and intangible. An IRS tax lien can not only give you stressful days and sleepless nights, but also has a negative impact on your credit reports, as it causes your credit score to plummet drastically. Thankfully, there are a few ways to move out of this quagmire.

1. Pay Your Debt in Full

The quickest way to get rid of a tax lien is paying the outstanding debt in full. Once you have settled the outstanding tax debt, the IRS will release your lien within a period of 30 days. You can pay online directly through your bank account using your phone or mobile device and get an instant payment confirmation, too.

2. Get an Overview of How Much You Actually Owe

It is a wise practice to understand your tax situation fully before you start paying off your due amount. Document how much unpaid tax you owe to the IRS each tax year. This will help you monitor what is going on with your federal tax lien. Maintain a detailed spreadsheet on current balance due, returns already filed, late penalties, and installment agreement. Such an approach to tax debt will give debtors a bigger picture and tell them what exactly they must do.

3. Discharge

“Discharge” helps remove lien from a specific property. Taxpayers may get a discharge of property from a federal tax lien under one of the Internal Revenue Code (IRC) provisions. Once the property is discharged, taxpayers need to sell it off and settle their tax debts.

4. Subordination

Subordination of a lien is different from the release of a lien. In the case of subordination of a lien, though the lien stays as is, its priority gets lowered as another lien against the same property gains priority over the lien in question.  This means the other creditor gets the right to be paid before the tax lien gets paid.

5. Withdrawal

Under certain circumstances, you may request the IRS to withdraw the Notice of Federal Tax Lien issued in your name. The benefit of a IRS tax lien withdrawal as compared to a lien discharge is that once withdrawn, the lien does not reflect on the taxpayer’s credit history, while it does reflect in the case of discharge.

Obtain a copy of your credit report and check its public records section that shows all reported tax liens. Go to the tax lien you are looking for and cross-check the balance information given therein to ensure there is no discrepancy. In order to qualify for an IRS lien withdrawal, you must first clear, in full, all pending liens and then fill out IRS Form 12277. Thereafter, a credit bureau will consider withdrawing the bad debt if you meet all the requirements.

Must Read: Tax Lien vs. Tax Levy: Examining the Differences

6. Wait for the Statute of Limitation to Expire

The IRS typically imposes a 10-year statute of limitations on its tax collections. As a general rule, the IRS will attempt to collect unpaid taxes for up to 10 years, counting from the time they assessed the taxes. If you are still unable to pay the taxes by the end of these 10 years, you may need to sell your house or refinance to pay the IRS. The IRS will cease its collection efforts, subject to some exceptions. For instance, if the IRS had filed a tax lien against you in 2007, and you are unable to pay it off for some genuine reasons, the IRS will withdraw its lien by 2017.

7. Apply for IRS’ Fresh Start Program

Recently, the IRS announced a program called Fresh Start, which makes the lives of debtors who qualify easier. Under this program, you can appeal for a withdrawal of your federal tax lien as if it never existed. For that, you must meet the following criteria, namely:

  • You are a qualified taxpayer
  • You must not owe more than $25,000
  • You have made at least 3 consecutive direct debit payments
  • You are compliant with all payment and filing requirements

How To Get IRS Tax Lien Assistance 

If you are wondering how to get assistance regarding a tax lien, the Law Offices of Nick Nemeth has got you covered with our expert tax attorneys in Dallas. Although the IRS has a number of internal organizations to help with various IRS tax problems, our IRS tax attorneys provide comprehensive assistance to resolve tax issues. Continuing the discussion, in this section, we cover five IRS organizations you can contact to get assistance regarding tax lien.

1. Office of Appeals

The Office of Appeals is an independent organization within the IRS that offers tax dispute resolution, including tax lien assistance, through an administrative and informal procedure. Before filing an appeal to the Office of Appeals, it is important to do your research and check whether you qualify for an appeal. Before you proceed, it is advisable to seek tax lien help from tax professionals, such as the team of Law Offices of Nick Nemeth.

2. Taxpayer Advocate Service

The Taxpayer Advocate Service or TAS is another independent organization within the IRS that helps individuals tackle tax issues. TAS is also responsible for keeping you updated on any changes made in the IRS or tax laws. The toll-free number to get in touch with the Taxpayer Advocate Services is (877)-777-4778, but before contacting the body, you need to be sure about all facts and know how to present your case.

3. Collection Advisory Group

The Collection Advisory Group offers IRS tax lien assistance for simple and complex issues, such as discharge, subrogation, subordination, and withdrawal. It is, however, important to do your research and seek help with IRS taxes liens from IRS tax lawyers, such as our team at Law Offices of Nick Nemeth, for tax lien assistance. If you need expert guidance on any matter related to IRS tax lien, the team of lawyers at the Law Offices of Nick Nemeth will be happy to help.

4. Centralized Lien Operation

The Centralized Lien Operation or CLO helps in offering tax lien assistance for basic tax issues, such as verifying a tax lien, requesting for lien payoff amount, and releasing a tax lien. CLOs are solely responsible for storing, processing, and managing tax lien information in the Automated Lien System, ALS. To contact the CLO, call (800)-913-6050.

5. Centralized Insolvency Operation

The Centralized Insolvency Operation or CIO is responsible to deal with all questions and doubts related to your bankruptcy application  or whether it is affecting your tax debt. When filing for bankruptcy, it is advisable to seek help from tax professionals and follow through the procedure with ease and minimum hurdles. To get in touch with the CIO, call (800)-973-0424.

Looking for IRS Tax Lien Assistance? Contact Us, Now!

It is advisable to seek professional help when facing IRS tax problems to avoid further financial crises. If you have received a notice of federal tax lien or have any questions related to tax liens, please call The Law Office of Nick Nemeth and schedule a free, no-obligation consultation with Nick personally.  You can reach us at (972) 426-2991 or fill out our contact form, and we will get back to you shortly.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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