Tuesday, June 10, 2008

How can a Tax Lien be removed?



An IRS tax lien can only be removed once one of the following takes place:


a. The time to collect the tax (CSED is the technical term) expires.
b. The debt is paid in full.
c. It is determined that the IRS made a procedural error in the assessment of the tax debt.


In the first case, the lien is self-releasing and no work is required on ones' part. In the second scenario you can request the IRS to mail you a Release of the Notice of Federal Tax Lien (normally mailed out 30 days after the debt is paid in full). Thirdly, in this case the IRS will remove the lien and send you a Release of the Notice of Federal Tax Lien. This is very rare, however, it is possible if it is determined that the IRS made a procedural error or filed the Tax Lien to the wrong person. A professional Tax Consultant can help you determine if an error has been made.

Finally, a Federal Tax Lien can be removed temporarily in order allow you to sell or refinance your home with the intention to pay the IRS.

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