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.

How does a Tax Lien affect my credit?

The IRS does not report to the credit bureaus, however, a tax lien filed against a taxpayer's social security number is public information. All that is needed is to walk into your local county courthouse and give the person's name to get a copy of the tax lien (form 668Y).

Once the Lien is filed, hence, made public, the credit bureaus pick up the information from the appropriate public records office (county recorder, MENSE, Secretary of State (UCC) or US District Court) and report accordingly.

A tax lien can affect your credit ratings negatively by lowering your score by as much as 200 points. In order to minimize the chances of a tax lien being filed against your social security, it is imperative that all returns be filed and an agreement be reached with the IRS to resolve your tax liability.

Be sure to consult with a competent and reputable tax consultant for the best possible outcome.

What is a Tax Lien?

A Tax Lien is a public legal notification that lets creditors know that the IRS has claims to ones' personal properties, thereby making it more difficult to borrow, sell or trade. The lien attaches to any property one owns (car, house) and it includes any properties acquired after the lien has been filed.

The IRS needs to meet the following criteria before filing a Tax Lien:

1. Assess a liability.
2. Send taxpayer a written notice and demand for payment.
3. Taxpayer refuses to pay the debt in full within 10 days after notification.

Regardless of the amount due, the IRS can and will place a lien against a taxpayer's social security number. Depending on the amount of the liability, years filed or unfiled, it is a good idea to reach out and find a competent Tax Consultant to help you determine your options and best ways to resolve your tax liability.