Once the IRS has attached the property of a taxpayer because of an outstanding tax debt, there are a limited number of ways to get the irs lien removed. While not impossible to accomplish, removing a tax lien is often an involved process that is not always easy for the taxpayer to complete without tax lien information and tax lien help. In order to have the greatest possibility of success, taxpayers seeking release of tax lien should contact IRS tax attorneys who are experienced in dealing with issues related to tax liens and release measures.
Process of How to Release a Tax Lien
A tax lien will generally be released only if:
- the underlying debt is paid in full
- the debt is discharged by a bankruptcy court
- he IRS agrees to an Offer in Compromise
- the lien becomes unenforceable (i.e. the tax lien statute of limitations has expired – usually after ten years from the date that the taxes were due to the IRS)
In cases when the lien has become enforceable, the IRS is required to release the tax lien within 30 days from the date that the enforceability expired. It is often necessary for the individual to contact the IRS directly to request this lien release (even though it is supposed to happen automatically), especially if time is of the essence and the taxpayer is looking to clear the deed to sell the property.
Letters requesting release of a tax lien (for any reason) should be mailed to: IRS Centralized Processing Center, P.O. Box 145595, Stop 8420G, Cincinnati, OH 45250. In addition to including personal identification information, taxpayers seeking a release should explain in the request the circumstances and the reasons that the release should be granted.
State Tax Lien Release
In most cases, while there is no guarantee that a tax lien will end up satisfying the outstanding taxes owed to the state, the theory is that with a tax lien on the property, the chances of the state recovering the funds is at least increased. In order to achieve a state tax lien release, the taxpayer must show the state that it is in the best interests of both parties to have the lien released (i.e. the state will somehow benefit), or that the individual will make other suitable arrangements that the state believes will be honoured. The laws and procedures of each state are varied, and an individual should familiarize themselves with the applicable jurisdictional laws before taking any action. Additionally, seeking the assistance of a skilled taxation attorney is extremely helpful in achieving success. (See also county tax lien release).
Release Federal Tax Lien
To release of an IRS Federal Tax Lien, the taxpayer must submit a request to the IRS to formally initiate the release process. Letters requesting a release federal tax lien should be mailed to: IRS Centralized Processing Center, P.O. Box 145595, Stop 8420G, Cincinnati, OH 45250. The letter must include information about the nature of the lien and the reason that the release is being requested.
If time is critical, such as situations involving the sale of an encumbered property, the taxpayer should call the Taxpayer Advocacy Service, which van often help expedite the process. It should be noted that the Service will require proof of urgency in order to try and speed the process along. Simply wanting the matter to be removed quickly is not sufficient to allow the Advocacy Service to assist against an irs tax lien. If the underlying tax debt has not been paid in full, it is possible to make payment through the Advocacy Service for expedited processing as well. To determine qualification for use of the Advocacy Service, the taxpayer should call their local IRS branch office directly.
How a Tax Attorney Can Help
Seeking out the help of an experienced tax lien attorney can mean the difference between getting a successful release and being denied your request by the IRS. As with most tax issues, the rules and regulations regarding tax liens are complex. As a general rule, the getting tax lien attorney help is the best move for individuals who are serious about obtaining a successful lien release.
