How to Remove a Tax Lien
Ideally, someone who owes back taxes to the IRS must pay these off quickly. As soon as the IRS has gathered its money, the lien will automatically be lifted. However, if someone feels that the Internal revenue service is asking for more money than it is owed, finding legal help would probably be the best plan of action.
Those who are not able to pay off back taxes immediately should work out a payment plan with the IRS. The IRS has forms on its website that can be sent in for this purpose. A person should carefully assess his or her finances and set a sensible monthly payment figure. This money will then be immediately taken from one's account every month.
Those who can figure out a compromise agreement will discover that this system of getting rid of tax lien is more preferrable than a payment plan. In a compromise agreement, the Internal revenue service will sacrifice a large amount of the money it is due and permit a person to just pay a small portion of the money. It should be noted, however, that seeking a compromise agreement from the Internal revenue service is far from easy. The IRS will not enter a compromise agreement with a person unless it has no hope of collecting the full sum of money it is owed. A dispute over the amount of money owed can also be the basis for a compromise agreement.
Yet another option is to sell off one or two assets that have a tax lien placed on them and then use this money to repay the IRS. Once the assets are sold, the IRS will automatically take a chunk of the money. This is something that most people would prefer to avoid, but it is much easier than having to deal with a tax levy. If the IRS places a tax levy on the property, then it gets full control over the assets and can make an owner sell them. One ought to think about this prospect and see if selling some of the assets will pacify the IRS and keep the other assets from being levied.
No one enjoys having a tax lien placed on their assets, but this is not something that can be ignored. If the lien has been placed by mistake, then one should call the IRS and supply proof that no back taxes are owed. The IRS will then give one a release form that explains that the lien was placed by mistake. On the other hand, a person who owes money to the IRS should understand that release tax lien proactively and either reach a payment agreement with the IRS or sell some assets off and pay the full sum back right away. If the circumstance is complex, then getting professional help is in order. With the help of a good lawyer and/or CPA, one may be able to reach a compromise agreement and only pay a small portion of the money owed.