| Has your credit been damaged? Are you having | | | | you can't repay it. In these types of situations, a |
| difficulties with buying or selling a home? Have you | | | | repayment plan may be the way to go. To submit an |
| been unable to open new credit accounts or purchase | | | | Offer in Compromise, offer a payment to the IRS less |
| a vehicle? If you've answered yes, you may have | | | | than the full amount owed, and the IRS will either |
| fallen victim to the IRS tax lien. | | | | accept or reject the offer. If the IRS accepts the offer, |
| An IRS tax lien is where the IRS files a Notice of | | | | you can pay the smaller amount that you offered in |
| Federal Tax Lien against taxpayers who have not | | | | payment plans. Since the Offer in Compromise needs |
| been fully paying their taxes. The action is the IRS' | | | | to be well-calculated and is not as simple it sounds, a |
| attempt to collect back taxes from taxpayers by | | | | tax professional can help. |
| placing a lien on the assets of those taxpayers. The | | | | - Temporarily remove the lien. Having the lien removed |
| statutory lien that they file is public information and can | | | | temporarily may be the best way to go if you can't |
| be seen by credit reporting agencies. | | | | pay off the lien or don't have the time to set up a |
| Liens can be on homes, which makes selling them | | | | payment plan with the IRS and need the lien removed |
| difficult. The IRS can also place liens on vehicles, | | | | to sell or refinance your home. The tax lien is lifted for |
| alimony, computers, furniture, securities, and company | | | | the time it takes to sell or refinance your property. This |
| receivables. | | | | is another case in which a tax professional could be of |
| To resolve this problem, you want to set up a | | | | great help. |
| payment arrangement and possibly make a settlement | | | | - Have the statute of limitations run out. A tax lien |
| with the IRS to pay less. | | | | cannot be enforced after 10 years. However, the tax |
| Options taxpayers have in dealing with the lien include: | | | | lien could be extended before it expires if the IRS |
| - Pay the tax. Once tax owed is paid in full, the lien | | | | decides to act upon the tax lien. Also, a tax lien can |
| should be removed within 30 days and can also be | | | | stay on your credit report permanently if nothing is paid |
| erased from your credit report. Proof of payment is | | | | to remove it. |
| given through an IRS Certificate of Release of Federal | | | | To Get Started |
| Tax Lien. Keep in mind that partial payments don't | | | | If you want to find out the total amount due on your |
| reduce the amount on the Notice of Federal of Tax | | | | lien, call or mail the IRS providing your name, phone |
| Lien. The amount must be paid in full to get rid of the | | | | number, address, Social Security number, and date the |
| Notice of Federal Tax Lien. | | | | amount on the lien should be calculated through. The |
| - Reduce the tax and pay through an Offer in | | | | IRS will send two payoff letters, one of which can be |
| Compromise. The IRS may decide it's not worth their | | | | returned with your payoff amount that the IRS can put |
| time and efforts trying to collect the tax from you if | | | | towards paying off your lien. |