How to Contest an IRS Lien

You can challenge an IRA lien on several potential grounds.

If you have received a tax lien from the Internal Revenue Service, you must respond quickly to protect your home and assets. In some cases, you may have only 10 days before your property can be seized for back taxes. You can contest an IRS tax lien on several grounds, the most common being: you believe a clerical error has occurred because you paid your taxes in full; you are currently in bankruptcy and qualify for a stay of tax debt; or the statute of limitations for collecting the debt passed before the lien was filed.

Instructions

1. Gather your paperwork supporting your position that the tax lien is invalid for a valid reason. You will need ample evidence at your fingertips to mount your defense and prove your case. The IRS website offers useful tax tips and publications that may help you contest a tax lien.

2. Contact your Local Taxpayer Advocate to express your concerns and ask for assistance in resolving your case. Contact information is available on the IRS website.

3. Request that an IRS manager review your case. Provide the manager with copies of your documentation showing that the tax lien should not be levied.

4. Schedule a Collection Due Process hearing with the Office of Appeals. The request must be filed by the date on the notice or you will lose your right to contest the IRS lien.

5. Attend the Collection Due Process hearing on the scheduled date and be prepared to lay out your case concisely and clearly.

Tips & Warnings

• Because the IRS is very thorough and rarely files a tax lien by mistake, rather than contesting the lien, your best option might be to agree that you owe the money and file an Offer in Compromise. This can reduce your tax debt to an amount that you can reasonably afford to pay. You can do this without a lawyer, but proceeding on your own is not advisable as you could lose your case over a paperwork error. If you lose the case, the IRS will move forward with the lien and you will still owe the disputed taxes as well as penalties and interest.

Resources

• IRS.gov: Releasing a Lien
• IRS.gov: Contact a Local Taxpayer Advocate