If you owe back taxes to the IRS, one of the ways it can collect your debt is by placing a tax lien on your property. This lien can be a major obstacle in your financial life as it can affect your credit score, prevent you from selling or refinancing your property, and even lead to wage garnishment.
This is why it’s important to deal with a tax lien as soon as possible. When you take advantage of the options available to you as soon as possible, you can protect your chances of clearing a tax lien.
Possible Ways to Clear a Tax Lien
There’s more than one way to wipe a tax lien from your property. That said, not every option will work for everyone the same way. To identify the options that could work best for you, it’s important to consult a tax professional who has experience dealing with the IRS.
Let’s take a look at some common ways people can get rid of a tax lien against their property.
Pay Off Your Tax Debt
The first and most obvious step to getting rid of a tax lien is to pay off your tax debt in full. Once you have cleared the debt, the IRS will release the lien within 30 days.
However, if you are unable to pay the debt in full, you can consider the following options.
Request a Lien Withdrawal
It may be possible to remove a tax lien by requesting the IRS to withdraw it. The agency is more likely to agree to a withdrawal when the lien is the result of an error made by the IRS when assessing your taxes or the statute of limitations for your tax debt has lapsed.
You may also file a request to withdraw a lien when the IRS agrees to an offer in compromise or installment agreement.
File for Bankruptcy
Bankruptcy will not directly help you discharge a tax lien, but it can help make paying your tax debt much more manageable. By filing for Chapter 13 bankruptcy, your debts are rolled into a repayment plan that lasts between three and five years.
Upon successful completion of this plan, you can resolve your tax debt and remove the tax lien.
Seek Professional Help
Navigating the process of getting rid of a tax lien can be complex and overwhelming. It's important to seek the help of a qualified bankruptcy attorney who can guide you through the process, negotiate with the IRS on your behalf, and help you explore all available options.
If you need help dealing with a tax lien, contact Buchalter & Pelphrey Attorneys At Law today. Our experienced bankruptcy attorneys can help you explore all available options and find the best solution for your unique situation.
Get in touch with us today by sending a message to our team.