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Lien Removal

The Internal Revenue Service can file a Notice of Federal Tax Lien which can attach to all property. This Federal Tax Lien also can have negative impacts on your credit score. In cases the IRS will remove federal tax liens, for example, generally speaking, under the Fresh Start Initiative if the balance owed is below $25,000 and the taxpayer enters into a direct debit installment agreement that pays back that taxes owed in full typically in at least 60 months or before the collection statute expiration date expires then the IRS, after the taxpayer typically has had 3 direct debit payments made, would generally remove the Notice of Federal Tax Lien.

Additionally, in some cases, the IRS may subordinate a lien on a home if refinancing if for example the equity that is taken out of the home is given to the IRS generally after any closing costs, this may be an option in paying down what owe the IRS. For example if owe the IRS $50,000 and have $20,000 in equity in your home and can get an equity line of credit or second mortgage but can't get that unless IRS agrees to have its lien be subordinated below the lender who is going to provide you with the $20,000. So IRS will agree to subordinate if pay the $20,000 to them and then the lien would be subordinated and be behind the second mortgage but now only owe IRS $30,000.

In some cases even if owe more than $25,000 to IRS and IRS has filed the Lien there are occasions where if can demonstrate that it in the best interest of the IRS to remove the lien and/or removing of the lien will facilitate collection of the tax debt. If the IRS accepts that it is in their best interest then they may withdraw the Notice of Federal Tax Lien.

At Carr Law we can assist in examining if a lien removal is possible in your case and what can be done to avoid any liens.



Lien Removal