How to Remove a Tax Lien

Failure to pay your Federal taxes could result in the IRS filing a Federal Tax Lien against you. This Tax Lien looks bad on a credit report and will be a problem when trying to buy or sell a home, purchase a vehicle and open new credit accounts Arrangements should be made to work with the IRS to set up a payment plan or pay off the debt that is owed. Most importantly, get the Federal Tax Lien removed or properly released.

Instructions

1. Contact the IRS as instructed in your notification of Federal Tax Lien letter to make arrangements for a payment plan or to pay off the amount owed in full as quickly as possible.

2. Obtain the assistance of a tax attorney that has a specialty in working with individuals who have had Federal Tax Liens filed against them. A professional in this area will definitely know how to work on your behalf with the IRS to possibly make a settlement with the IRS or make arrangements for payments. It is even possible that you will want to consider skipping Step 1 and going directly to a qualified tax attorney for assistance.

3. Pay off the debt per the arrangements with the IRS or the arrangements made through your tax attorney. It is very important to make these payments on time to avoid any further problems or fines.

4. Verify that all payments have been received by the IRS and then contact your tax attorney to have the tax lien removed or start the release process. The tax attorney will draw up a legal document called a Release of Federal Tax Lien. This document will describe the Federal Tax Lien that was filed against you, the date it was filed and where. In addition, it will be executed or signed by a representative of the IRS stating that the debt owed has been paid in full or to the satisfaction of the IRS and they are releasing you of any further debt or monies due. The tax attorney will handle all the legal issues with having the Release of Federal Tax Lien filed of record, meaning the Tax Lien has been removed.

5. Make sure that you are furnished a copy of the Release of Federal Tax Lien that was executed or signed by the IRS and filed of record in the appropriate county. Keep this document in a safe place with your other tax records.

Tips & Warnings

• A tax attorney will be able to help you make the best decisions regarding having your Tax Lien released or removed. In addition, a tax attorney may help you negotiate with the IRS or help you obtain special loans to help pay off the Federal Tax Lien.

• A Federal Tax Lien is a very serious legal problem that you should not ignore. Having this paid and released is extremely important to avoid legal difficulties in the future and to protect your credit history.