IRS Tax Liens

Having back taxes would be devastating, especially if the IRS mails you a Notice of Federal Tax Lien. Your credit will be destroyed with a tax lien, and you will not be able to borrow against your assets or purchase a new home or car on credit.

The IRS will file a notice of your tax debt in public records offices in the counties you operate in if you do not settle your tax bill by the deadline.

If you can't avoid a lien, note that before the lien notice is sent to the public records offices, you're sent a notice beforehand, providing you the chance to negotiate with the IRS or settle your back taxes.

The IRS also needs to give you the opportunity to a hearing. You will be allowed to question the validity of the lien then. If you're not successful, you may then appeal to the U.S. Tax Court or a federal district court.

Release of Tax Lien

• Filing for bankruptcy
• Offer in Compromise
• Statute of limitations has expired (average of ten years)
• Full payment of tax debt

Each lien filed against you will have a Certificate of Release of Lien and you'll receive it from the IRS within thirty days. You can also request a certificate from the Chief of Special Procedures in the office where the lien was filed.

How To Clear Your Credit

You'll need to get your credit report from the credit reporting agencies. See if your credit history was updated. Ask the agencies to check the public records or contact the IRS if not. You may also send the agencies a copy of the certificate. Take note that the placement of a tax lien may not be removed from your credit records for as long as 10 years.

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Originally posted 2007-11-11 08:06:33. Republished by Blog Post Promoter

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