A tax lien is a powerful tool used by the IRS to secure outstanding tax debts. Through tax lien, IRS obtains a legal claim on the real estate, personal property, and financial assets of defaulting taxpayers. This creates financial stress on the taxpayers as they neither can use their personal assets to apply for a loan nor can auction them. Additionally, once a tax lien is created at the federal level, it is extremely difficult to remove. Even filing for bankruptcy does not remove the tax lien. This is where legal advice from federal tax lien attorneys can be helpful to reduce its impact. That said, in this blog, we discuss some situations in which a tax lien is removed by the IRS, read on.
In case of clerical error
A tax lien is not easy to be removed from public records, but in instances of human or clerical errors like imposing lien on the wrong taxpayer, it can be removed by the IRS. In such cases, it is advisable to consult a federal tax lien attorney at the earliest to get the proper solution.
Expiration of the Statute of Limitation
The Statute of Limitation specifies the maximum time frame within which civil and criminal legal proceedings can begin following an alleged offense. In the case of an IRS tax lien, the maximum specified limit to assess and collect past dues taxes is a decade (ten years). IRS is highly capable of collecting outstanding debts within the set time frame, however, there can be certain exceptions. In such cases, once the time period is over, IRS professionals cannot collect dues and will have to remove the tax lien from the public records.
Payment of outstanding debts in full
The best way to remove a federal tax lien is to clear your debts in full. The IRS advises making a single payment to settle the debt, but in case you are not capable, you can benefit from provisions under the Fresh Start Initiative. Here, the IRS offers numerous ways to help financially distressed taxpayers such as installment agreements. You can choose any provision based on your eligibility.
Conclusion
Dealing with an IRS tax lien is a complex task, therefore assistance from federal tax lien attorneys is required. They can advise and help taxpayers on the best ways to settle their tax liabilities for less and can also make available streamlined installment agreements for their clients to ease the payment process. IRS lien attorneys also advise on ways to reduce the impact of the lien. They are eligible to represent their clients in a court of law in case of criminal prosecution, if required. Residents of Dallas looking for tax lien assistance should consult an IRS lawyer proficient in matters related to withdrawal of federal tax lien from public records. Consult a reputable IRS lawyer at the earliest for expert IRS tax lien help and save a great deal of your time and energy.
Sign in to leave a comment.