Steps to Remove a Tax Lien from Public Record

How to Remove a Federal Tax Lien

A tax lien is one of the most powerful tools the IRS can deploy to recover outstanding dues. It is a legal claim that secures the IRS’s interests in your assets (real estate, financial assets, and personal property). This can affect you in many ways, such as facing issues when applying for a loan to auctioning your property, and the lien continues to exist even after you file for bankruptcy. However, that’s just the tip of the iceberg. While a tax lien can be removed across all public records, however, given all the intricacies involved, it is advisable to consult a tax lien attorney for the best tax lien assistance. That said, in this blog, we will discuss the steps you can take to remove a tax lien from public record.

When can the IRS remove a Tax Lien?

The IRS can remove a tax lien under the following conditions:

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There is an error

To err is human, and the IRS agents are no exception. A federal tax lien can be removed if it has been imposed on the wrong taxpayer. In such cases, you should contact the IRS at the earliest to get a solution.

Outstanding taxes have been paid

Clearing outstanding taxes is the best way to get a tax lien removed. The IRS suggests paying a lump sum amount, however, you can still benefit from provisions under the Fresh Start Initiative, depending on your eligibility.

The statute of limitations has lapsed

Federal tax liens are to be assessed and collected within a set time frame. In case of back taxes, the IRS can go back up to a decade to collect unpaid taxes. Though it is highly unlikely for the IRS to not collect outstanding dues within a decade, technically, once this time frame lapses, the government agency can no longer do so.

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Removing a tax lien from public record

As stated earlier, removing a tax lien from public record is a vital step to restore your financial health. The steps to follow in that regard are:

1. Clear Outstanding Balance

As a taxpayer, it is crucial for you to understand that avoiding the IRS or not paying your taxes won’t resolve your problems. The IRS provides eligibility-based concession provisions under its Fresh Start Initiative. A tax lien attorney can help you weigh available options and plead your case.

2. Request a Copy of your Credit Report

Requesting a copy of your credit report is important, depending on when the lien was filed, it features information on the lien imposed on you. It mentions the amount you owe, which you should confirm with the IRS. Remember, time is of the essence, which is why you must seek IRS tax lien help at the earliest to resolve the issue.

Conclusion

Dealing with a federal lien involves several intricacies, which can be overwhelming for most taxpayers. This is where the Law Offices of Nick Nemeth steps in as a one-stop provider for all types of IRS tax help in Dallas, including tax lien assistance. Our team of seasoned attorneys provide the best tax problem solutions to give you peace of mind. To discuss your case with our team of Dallas IRS lawyers, call (972) 426-2553. Alternatively, you can fill out our contact form.