Getting Help For An IRS Tax Lien

The government law obligates all businesses and individual taxpayers to file their income taxes every year. Missed filings and failure to report the correct amount of income can cause a discrepancy with the Internal Revenue Service. If a business or an individual taxpayer owes the I.R.S. money, the organization will gave that person notification of such a balance by way of certified mail. One of the hugest mistakes that people make when they receive such letters is ignoring the Internal Revenue Service. The I.R.S. is a strong government organization that outranks creditors. A balance of an owed debt to the I.R.S. is a serious matter that can end in an IRS tax lien.

What Should A Person Do About I.R.S Debt?

A person who receives notice of a debt to the I.R.S. should read the notice thoroughly and take note of any phone numbers that the letter bears. Speaking with an attorney about the notice is not necessary at this stage, but it is an excellent idea. Once the I.R.S. has established that a party owes it a debt, then someone will have speak in that party’s behalf to come up with a reasonable repayment plan. The I.R.S. offers installment arrangements and direct debit arrangements. The organization is willing to work with a taxpayer or his or her attorney to resolve a debt. If the person makes no effort to return the funds, then the I.R.S. may issue a tax lien.

What Is a Tax Lien?

A tax lien is a procedure in which the I.R.S. takes ownership of one’s personal assets or business assets to secure the funds that the party owes. Such assets include homes, vehicles, businesses and personal property. The I.R.S. does not take possession of the property at this point, but if the person does not attempt to rectify the debt, then the organization may levy the property.

A lien is not a levy. A lien is more of a threat to take someone’s home or business, and a levy is the actual execution of such. Neither state of government debt is good. A debt that gets to lien stage is one that the taxpayer has ignored for quite some time. A government debt should never get to levy stage because too many opportunities exist for a person to straighten out the debt.

How To Avoid A Lien

Communication is the key in avoiding an IRS tax lien. As previously stated, a person must act on a lien notice as quickly as possible. The I.R.S is quite flexible during the initial stages of a tax lien. They will generally accept payment arrangements even if they are small. As long as the person or business owner makes an honest effort to pay the debt, then the I.R.S. will not make aggressive collection efforts. A tax debt attorney can help an individual to negotiate with the Internal Revenue Service for a reasonable repayment plan. Such a person will sit down with a taxpayer and develop a personal strategy for recovery.

How To Remove A Lien

A taxpayer has several options for removing a tax lien. The first option is paying the debt completely. The Internal Revenue Service will generally release a lien within 30 days after a person pays the debt of interest. Many businesses and individual taxpayers do not have the lump sum available, so they will have to take an alternative route. The person can apply for a withdrawal with the help of an experienced attorney. A withdrawal is something that the I.R.S. may grant if another creditor is competing for the same home or business.

To qualify for a withdrawal, the person who owes the I.R.S. must meet certain criteria. Converting an installment agreement into a direct debit agreement is a good way to potentially qualify for a withdrawal. The person who is requesting the withdrawal must also meet other criteria such as filing income taxes on time and owing less than $25,000. Additionally, the arrangement that the person makes for repayment must pay the entire debit within 60 months or five years. The person must have also made at least three timely payments on the debt before the I.R.S. will consider the lien withdrawal.

An attorney can help a taxpayer with an IRS tax lien as well as several other aspects. Such a person may be able to negotiate with the I.R.S. to reduce the amount of the debt. He or she can also help to stop the process of debt collection before tax levies go into effect. A person or business owner who is worried about tax liens and levies should contact an honorable law firm immediately. An honorable law firm will have compassion for the taxpayers and businesses that are struggling. Ideally, the firm will be willing to go the extra mile for its clients.