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Federal Tax Lien Collection Actions in Detail (Part V)

Federal Tax Lien Collection Actions in Detail (Part V)

What are reasons the IRS will “withdraw” a Federal Tax Lien?

A “withdrawal” removes the Notice of Federal Tax Lien from public record. The withdrawal tells other creditors that the IRS is abandoning their lien priority. This doesn’t mean that the federal tax lien is released or that you’re no longer liable for the amount due.

The IRS may withdraw a Notice of Federal Tax Lien if:

· You’ve entered into an Installment Agreement to satisfy the tax liability, unless the Agreement provides otherwise. For certain types of taxes, the IRS routinely grants Notice of Federal Tax Lien withdrawal requests if you’ve entered into a direct debit installment agreement and meet certain other conditions,

· It will help you pay your taxes more quickly,

· The IRS didn’t follow their procedures,

· It was filed during a bankruptcy automatic stay period, or

· It’s in your best interest and in the best interest of the government. For example, this could include when your debt has been satisfied and you request a withdrawal.

For more information, see Form 12277, Application for Withdrawal of Filed Notice of Federal Tax Lien or the instructional video at www. irsvideos.gov/Individual/IRSLiens/LienNoticeWithdrawal.

Next week: How to apply for a “discharge” of a Federal Tax Lien from property

(IRS Publication 594 and IRS.gov) (TTT 03/03/2020)