You could have an IRS tax lien attached to your business or personal assets and not even know it. Why? Because the IRS notifies taxpayers after they’ve filed the lien. Once the IRS has filed the lien with the county you live in, then they will send you a Notice of Federal Tax Lien. The lien then becomes effective ten days after the IRS issues a written demand for payment of outstanding taxes.So, those who know they owe the government taxes may not be surprised to find out they have a tax lien. However, many unsuspecting people are in the dark about how and why the lien is attached and what to do when they find out. The most important thing to remember is don’t try to solve the problem by yourself. Do not call the IRS and speak to one of their representatives. You could make the situation much worse than it actually is. Contact a tax attorney right away and let them guide you as to the most efficient way to handle your specific issue.
Withdrawing a Federal Tax Lien Is The Magic You WantOnce a tax lien has been recorded in the public records, your credit scores will be adversely affected. So the first thing to find out from the attorney you work with is if the lien can be withdrawn. Be specific. You want to be certain that the word you use is “withdraw” not “release.” There’s a big difference.
Withdrawing a federal tax lien means the IRS will rescind the lien, as if the lien was never filed in the first place. Your creditors will never know it was there. Your credit score will not be affected at all.
There are a few reasons the IRS will withdraw a federal tax lien. First of all is if the lien was filed in error. Sometimes it happens that they incorrectly file a lien against the wrong person. Also, if you pay the outstanding balance in full or it is satisfied through a successfully negotiated offer in compromise they will withdraw it. Unlike other credit and loan accounts, the IRS will not periodically update the balance on your federal tax lien. Your attorney can contact the IRS to obtain a letter showing the current payoff amount. And, that updated payoff amount will be sent only to you and/or your attorney. It is private, not public information.
In order to have an IRS lien filed against you, you must owe $10,000 or more in back taxes. It would be pretty unusual to be unaware of owing that amount. So, if you know you don’t owe that much, you can almost be certain that if a lien has been filed, it is in error. If it has not been filed in error, take action immediately. Contact the most reputable, experienced tax resolution attorney you can find as geographically close to you as possible. The best news your attorney can give you is that the lien was filed incorrectly or in error, then make it magically disappear.