Facts About IRS Tax Liens

If you owe tax debt, the IRS will send you a Notice of Federal Tax Lien and it would be disastrous. Your credit is destroyed with a tax lien, and you won't be able to borrow against your assets or buy a new home or car on credit.

The IRS will file notice of your tax debt in public records offices in counties you operate in if you don't pay your tax bill by the due date.

A lien should be avoided, but if not, the IRS will send you a notice, providing you with the opportunity to pay or negotiate with the IRS before the lien notice is sent to the public records offices.

You can contest the lien at a hearing, which you may appeal to a federal district or the U.S. Tax court.

How to Get a Tax Lien Released

• Settle tax debt in full
• File bankruptcy
• The IRS accepts an Offer in Compromise
• Expired statute of limitations

Within thirty days, you will get a Certificate of Release of Lien for each lien filed against you. You can also request a certificate from the Chief of Special Procedures in the office where the lien was filed.

Your Credit Cleared

Your credit report can be obtained from credit reporting agencies. Your credit history must be updated. Ask the agencies to check public records or contact the IRS if not. You may also mail the agencies a copy of the certificate. Take note that the tax lien might not be removed from your credit records for as long as ten years.

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