How to Withdraw an IRS Lien
An IRS lien is a legal claim on personal property to guarantee payment will be made to the IRS. Although common, IRS liens are normally a legal action of last resort because they affect credit ratings. A lien is attached to all property, which means that any proceeds from the sale of property will be used to satisfy outstanding IRS debt. Withdrawing an IRS lien is done through an appeals process that seeks to find a mutually beneficial solution for the taxpayer and the IRS.
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Instructions
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Call the number listed in your lien notice to contact a collections manager as soon as you receive the letter. You will be required to explain why you disagree with the lien and propose a solution to the lien. If you believe the outcome is unfair, you can apply for an appeal.
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File an appeal under the Collection Appeals Program with IRS Form 9423 (see a link to the form in "Resources"). Filing Form 9423 initiates the appeals process and notifies the IRS that you disagree with the collection activity taken against you. The letter you received from the IRS will have very specific information about where to mail the appeal.
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Schedule a conference between you and an IRS officer to settle the outstanding tax. A mutually beneficial agreement is the goal of the appeals process, but you must be prepared to propose a solution to settle any outstanding tax. In addition, under the Collection Appeals Program, you will not be able to appeal the outcome in court.
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Prove to the IRS officer during your appeal conference that the tax lien is premature or outdated. Specifically, you must prove either that you did not have a chance to dispute the lien, you have not discussed other collection options, that all taxes were paid prior to the filing of the lien, the lien is an error or that the IRS filed the lien during the stay period of a bankruptcy.
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Tips & Warnings
Make sure your tax returns are correct.
Be truthful during your conversations with IRS representatives.
