How do I negotiate with the IRS if they place a lien on my property?

When a tax lien is placed on a property the property owner has several options available to have the lien removed. While any lien will have consequences with credit scores and information, repaying the back taxes or negotiating through an offer in compromise can minimize any short or long term damage. Negotiating with the IRS to have the tax lien removed can be a long and difficult process so retaining and working with a tax attorney prior to any contact is always the best option.

The first step in negotiating a payment plan or attempting to settle the debt in a lump sum, which is an offer in compromise, starts with knowing just what you can reasonably repay. In a payment plan it is important to keep in mind that you not only have to repay the back taxes but you will also need to keep current on your yearly taxes moving forward. In addition you will need to have funds to stay current with other loans, bills and ongoing expenses.

With this information in place and in consultation with an attorney contacting the IRS and proposing a settlement plan or lump sum payment for less than the total amount owed is the next step. Negotiation on the specific details of the repayment plan or the offer in compromise of a full settlement requires justification of your offer and a solid understanding of what counteroffers you will consider.