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How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option Two    Part VI

How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option Two    Part VI

A “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due. For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF) and the video Lien Notice Withdrawal.

Two additional Withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative. Last week option one was discussed.

Option Two

The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:

  • You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
  • You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
  • Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
  • You are in full compliance with other filing and payment requirements
  • You have made three consecutive direct debit payments
  • You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.

(IRS.gov) (TTT 01/15/19)

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How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option One    Part V

How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option One    Part V

A “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due. For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF) and the video Lien Notice Withdrawal.

Two additional Withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative.

Option One

One option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release. General eligibility includes:

Your tax liability has been satisfied and your lien has been released; and also:

  • You are in compliance for the past three years in filing – all individual returns, business returns, and information returns;
  • You are current on your estimated tax payments and federal tax deposits, as applicable.

Next week – How to request a withdrawal of a Federal Tax Lien – Option Two?

(IRS.gov) (TTT 01/08/19)

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How Do You Remove a Lien Against Your Property?   Requesting an Immediate Certificate of Release Part IV

How Do You Remove a Lien Against Your Property?   Requesting an Immediate Certificate of Release Part IV

If you have an immediate or urgent need for a Certificate of Release of Federal Tax Lien, you can visit or telephone the local IRS office. A list of local offices, their available services, and their hours of operation may be found on the IRS website www.irs.gov by searching “Local Contacts.”

When visiting the IRS office, be prepared to show proof of payment or other documentation that demonstrates your liability has been satisfied. If there is an unpaid balance on your liability, you must pay the balance with a certified check, cashier’s check, or acceptable money order before a certificate of release can be issued. For other forms of payment, the certificate of release will be issued within 30 days of the liability being satisfied.

To request a payoff or other information about your Notice of Federal Tax Lien, contact the Centralized Lien Operation as listed below General information about Federal tax liens may be found at www.irs.gov by searching “liens.”

Telephone Number: 800-913-6050

Outside the United States: 859-669-4811

Fax number: 855-390-3528

If you prefer to write, your request should be mailed or faxed to the following address:     Internal Revenue Service                                                                                             Centralized Lien Operation                                                                                                P.O. Box 145595, Stop 8420G                                                                                   Cincinnati, OH 45250-5595

Next week – How to request a withdrawal of a Federal Tax Lien?

(IRS.gov Publication 1450) (TTT 01/01/19)

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How Do You Remove a Lien Against Your Property? Requesting a Certificate of Release Part III

How Do You Remove a Lien Against Your Property? Requesting a Certificate of Release Part III 

Requesting a Certificate of Release If the Federal tax lien has not been released, you can request a Certificate of Release of Federal Tax Lien. The request must be in writing and should be mailed to the Advisory Group servicing your area. Use Publication 4235, Collection Advisory Group Addresses, to determine the address to mail your request. 

Your request must contain the following information: 

• The date of your request 

• The name and address of the taxpayer 

• One copy of each Notice of Federal Tax Lien you want released 

• Why the lien should be released 

• A telephone number with the best time for us to call you should we need additional information 

If you have paid the tax liability, enclose a copy of any of the following with your request: 

• An Internal Revenue receipt 

• A canceled check 

• A record of payment by electronic fund transfer 

• Any other acceptable proof of payment 

We may need to research your account. We will provide a certificate of release once we have confirmed your liability is satisfied. 

Next week – How to request an immediate Certificate of Release? 

(IRS.gov Publication 1450) (TTT 12/18/18)

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How Do You Remove a Lien Against Your Property? Part II

How Do You Remove a Lien Against Your Property? Part II

The IRS suggests four methods to remove a lien against your property: Pay in full, Discharge of property, subordination, and withdrawal.

A. Pay in full option:

(1) When your tax debt is paid in full, the IRS will release your lein within 30 days (IRC 6325(a). The IRS will issue a Certificate of Release of Federal Tax Lien for filing in the same location where the notice of lien was filed. If we have not released the lien within 30 days, you can ask for a certificate of release.

(2) Requesting a Copy of the Certificate: If it has been more than 30 days since you satisfied your tax liability and you have not received a copy of the Certificate of Release of Federal Tax Lien, you may call the Centralized Lien Operation to check the status of the certificate.

Telephone Number: 800-913-6050

Outside the United States: 859-669-4811

Fax number: 855-390-3528

If you prefer to write, your request should be mailed or faxed to the following address:

Internal Revenue Service

Centralized Lien Operation

P.O. Box 145595, Stop 8420G

Cincinnati, OH 45250-5595

The copy of the certificate you receive will not show the official recording information. For a copy of the recorded certificate, you must contact the recording office where the Certificate of Release of Federal Tax Lien was filed.

Next week – How to request a Certificate of Release?

(IRS.gov) (TTT 12/11/18)

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Understanding a Federal Tax Lien Part I

Understanding a Federal Tax Lien Part I:

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after:

The IRS:

* Puts your balance due on the books (assesses your liability);

* Sends you a bill that explains how much you owe (Notice and Demand for Payment); and

You:

* Neglect or refuse to fully pay the debt in time.

The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property. For more information, refer to Publication 594, The IRS Collection Process (PDF) .

Next week – How do you remove a lien against your property?

(IRS.gov) (TTT 12/04/18)

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What’s the Difference Between a Levy and a Lien?

What’s the Difference Between a Levy and a Lien?

A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against your property to secure payment of your tax debt, while a levy actually takes the property to satisfy the tax debt.

A federal tax lien comes into being when the IRS assesses a tax against you and sends you a bill that you neglect or refuse to pay it. The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property. You have the right to appeal if the IRS advises you of the intent to file a Notice of Federal Tax Lien. Your appeal rights are explained in IRS Publication 1660, Collection Appeal Rights (PDF).

When filed, the Notice of Federal Tax Lien is a public document that alerts other creditors that the IRS is asserting a secured claim against your assets. Credit reporting agencies may find the Notice of Federal Tax Lien and include it in your credit report. An IRS levy is not a public record and should not affect your credit report.

(www.IRS.gov) (TTT 11/27/18)

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Taxpayers Now Have More Time to Challenge a Levy

 

Taxpayers Now Have More Time to Challenge a Levy

The IRS reminds individuals and businesses that they have additional time to file an administrative claim or bring a civil action for wrongful levy or seizure. Tax reform legislation enacted in December extended the time limit from nine months to two years.

Here are some facts about levies and the extension of time to file a claim or civil action:

  • An IRS levy permits the legal seizure and sale of property to satisfy a tax debt. For purposes of a levy, the term “property” includes wages, money in bank or other financial accounts, vehicles and real estate.
  • The timeframes apply when the IRS has already sold the property it levied. Taxpayers can make an administrative claim for return of their property within two years of the date of the levy.
  • If an administrative claim is made within the extended two-year period, the two-year period for bringing suit is extended for one of two periods, whichever is shorter:

    o Twelve months from the date the person filed the
    claim.
    o Six months from the date the IRS disallowed the
    claim.

  • The change in law applies to levies made before, on or after December 22, 2017, as long as the previous nine-month period hadn’t yet expired.
  • Anyone who receives an IRS bill titled, Final Notice of Intent to Levy and Notice of Your Right to A Hearing, should immediately contact the IRS. By doing so, a taxpayer may be able to make arrangements to pay the liability, instead of having the IRS proceed with the levy.

(Tax Reform Tax Tip 2018-123)   (TTT 11/13/18)