6 Ways to Release or Remove a Tax Lien

You go to the ATM but can’t get any money out. Your payroll manager calls and says your paycheck has been levied. What do you do next?

Here’s 6 ways to Release or Remove an IRS or State Tax Lien:

  1. Obtain a Properly Structured Monthly Payment Plan. You don’t have to ‘full pay’ your tax debt. Usually the tax collector will accept a payment plan. But too often troubled taxpayers make payment arrangements they can’t afford. It’s crucial you obtain a properly structured plan that will satisfy the tax agency without adversely impacting your family’s well-being. This requires a working knowledge of local and national collection standards.
  2. File for an Offer in Compromise. It really is possible to Settle with the IRS or the state forIRS Notice Less than you Owe, if you can document with the collectors that your reasonable collection potential is not sufficient to clear the debt. It can be a complex process, and take up to 12 months to complete, but a successful offer will permanently put your IRS problem behind you.
  3. Appeal the Lien Filed. There are times when a lien is filed in error. Perhaps you paid your bill late, but the tax agency personnel neglected to update your account record. Under the Taxpayers BIll of rights, you are entitled to a Certificate of Release when this happens. Deliver photocopies of this document to the three credit bureaus to minimize damage to your credit rating.
  4. Gain Currently Non-Collectible (CNC) Status. This IRS status is granted to taxpayers who are experiencing financial hardship, and puts collection activity on “hold”. Assuming you have filed all your tax returns, you’ll be required to submit a complete record of your financial assets, and proveSPENCER WISCONSIN Sept.28 2014: Payday Loans is a short term loan company. ** Note: Soft Focus at 100%, best at smaller sizesthat your income and expenses comply to local and national collection standards in order to document your inability to pay your back taxes. Once obtained, CNC status generally lasts 2 years, after which time you can re-apply by submitted updated financial information.
  5. Do Nothing. Try to live with the fact that the IRS will have 10 years from the date the tax is assessed to continue collection activity, freeze your bank accounts, garnish your pay, and seize property. This is normally not a good option.
  6. Get Professional Representation. Dealing with IRS collections and appeals processes is a very specialized area of practice, and one in which most taxpayers, lawyers, and accountants lack the expertise and experience to deal with successfully. That’s why the US Treasury has enrolled certain professionals, designated as Enrolled Agents, who specialize in dealing with IRS problem resolution. They know what to do and how to do it when it comes to removing a tax lien or releasing a tax levy.

ANCHOR ON THIS: Tax liens and levies are actions of last resort for federal and state tax collectors. You’ll generally have received multiple assessment letters and notices of intent to levy before your bank account or paycheck is hit. The bad news is that your own procrastination helped get you here. Tax problems can indeed be overwhelming. There’s good news however. It really is possible to get a fresh start, and the steps to resolving your tax matter are usually easier than you feared. Now it’s time to make a quality decision, decide you’re going to put your IRS problem behind you, and take that first step.

 

Final Notice of Intent to Levy

You’ve received a Final Notice of Intent to Levy. You owe the IRS and Virginia, you’ve ignored their requests for payment, and now it’s getting serious. What does it mean? Where do you turn?

A tax levy is not the same as a tax lien. Both are four letter words. Both start with “L”. But a levy is much more serious.

  • A tax lien is a notice to the world that an individual or a business owes the IRS. But no money or property is taken by filing a federal tax lien.
  • On the other hand, through a tax levy the IRS or state of Virginia collects on your tax debt by seizing your real or personal propertytax levy irs virginia
While you may receive the Final Notice of Intent to Levy, it’s usually your bank or employer who receives the actual levy. The property you own—wholly, partially, or jointly with others—may be seized and sold to satisfy your debt to the IRS.
Retirement plans and homes are generally off limits to IRS seizure, as are vehicles needed for work. Most other assets, however, including bank accounts and a portion of your paychecks,  can be subject to seizure.
  • A tax lien can be the kiss of death to your credit rating—which is bad.
  • A tax levy takes money right out of your bank account—which is worse.
The IRS usually files a lien before they initiate the levy process, but they don’t have to. They file about 100 times more liens each year than seize property through the levy process.
ANCHOR ON THIS —>   If need tax levy help, and have received a Final Notice of Intent to Levy, contact Anchor Tax Relief today. We’re IRS and Virginia Tax Problem Experts. We deal with the IRS and the Virginia Department of Taxation on a daily basis, obtain relief from liens and levies, and solve your tax problem, permanently.

How do you fix an IRS Virginia Tax Lien?

For some, a recorded tax lien is just one more black mark on their credit report—which was likely already a mess anyway. It’s not a levy notice. That said, how do you fix an IRS Virginia tax lien? You have three options:
  1. Appeal the lien filing by contacting the IRS Appeals Office. It’s not likely you’ll win, but if you do, the lien will

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    fix tax lien irs virginia

    be withdrawn. Unfortunately, the fact of the lien filing will not be removed from your credit report.

  2. Pay in full, even if it means borrowing from friends or family. It’s better to owe just about anyone than the IRS, not to mention just about anyone’s interest rates will be lower.
  3. Request a partial discharge. Perhaps you own several assets that have been encumbered by the lien. If you want to sell one to pay off your IRS debt, ask for a discharge on that asset. The IRS will likely agree; bottom line, they want their money and a partial discharge can open the door to resolving the debt.
Note that bankruptcy isn’t included in the list of options to settle the tax lien. Your personal liability may be cleared by the bankruptcy, however, the tax lien will remain. (See a bankruptcy attorney for a professional analysis and advice for your specific situation.)
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