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5 ways a tax lien could be removed

On Behalf of | Feb 24, 2021 | Tax Debt

Finding oneself on the receiving end of a notice from the IRS about unpaid taxes is not a desired position to be in. This type of notice may come as a surprise to some Georgia residents, and others may have anticipated it because of their difficult financial situation. Whatever the case, it is important that outstanding tax debt is handled appropriately. Otherwise, a tax lien could be placed on a person’s property, giving the IRS a claim to that property as a creditor.

Unfortunately, tax liens apply automatically after the IRS sends a letter demanding the payment of outstanding taxes. This can make a situation more difficult because the lien can only be removed under certain circumstances. The most obvious circumstance is the taxpayer paying the outstanding balance as well as any fees, interest and other penalties that may apply.

However, there are other scenarios that could result in the IRS removing a lien, including:

  • The taxpayer comes to an agreement with the IRS to make payments according to an approved schedule and sticks to that schedule.
  • The Notice of Federal Tax Lien was not filed in compliance with the proper IRS filing procedures.
  • The withdrawal of the notice would benefit both the taxpayer and the government.
  • The withdrawal of the notice would allow the taxpayer to pay off the remaining balance more quickly.

Understanding a tax lien and the possible options for its removal can be difficult, as are many matters associated with the IRS. If Georgia taxpayers are facing a lien or believe that one is imminent due to their inability to pay their outstanding taxes, they may wish to explore their options for addressing the matter head on. Some individuals may be able to qualify for an Offer in Compromise, Currently Not Collectible status or other options that could allow them to have the lien removed and give them the chance to pay off their debt.