How can I get an IRS Lien Removed
Did you recently receive IRS Letter 3172? This letter is sent by the IRS to inform you that your tax debt has not been paid, and the IRS is filing a lien against you to collect the debt owed. In simple terms, a lien is a legal claim against your assets, serving as another form of payment for your debt. It secures the government’s interest in the property if it is ever sold. Letter 3172 is also known as a Notice of Federal Tax Lien (NFTL) and is sent to taxpayers who owe more than $10,000.
There are three steps before receiving an NFTL:
The IRS has assessed the tax liability.
The IRS has given the taxpayer notice of the assessed amount and requested payment.
The taxpayer has failed to pay the assessed amount within 10 days after notice and demand.
Within Letter 3172, the IRS provides you (the taxpayer) with a chance to request an appeal. You or your tax representative MUST reply to the letter within 30 days of the date in the letter. To request a hearing for an appeal, you must file Form 12153, Request for a Collection Due Process Hearing. The NFTL is filed to notify all other creditors that the IRS intends to collect a debt from you. As a result, the filed NFTL is public information. At this point, you may start receiving mail from various large tax resolution companies. Don’t let them take advantage of you; these firms have substantial marketing budgets and will pass on that cost to you.
The only way to have the IRS lien removed is to pay off the tax debt in full. The IRS will release the lien within 30 days after the debt is paid in full.
Here are some actions you may take to help remove the lien from real property:
Discharge of Property: The IRS will remove the lien, allowing you to sell your property (to pay off the tax debt) and transfer the property with a clear title. However, you must file Form 14135, Application for Certificate of Discharge of Federal Tax Lien.
Subordination: This action does not remove a lien but allows creditors to move ahead of the IRS, making it easier to refinance. However, you must file Form 14134, Application for Certificate of Subordination of Federal Tax Lien.
Withdrawal: This action removes the public NFTL and confirms that the IRS is not competing for the property. However, as the taxpayer, you are still liable for the debt, and you must file Form 668(Y).
Receiving Letter 3172 can potentially cause distress and disrupt your sleep. We are prepared to provide assistance in executing the required paperwork on your behalf, guiding you step-by-step through the IRS collection process.