If you have been in the unfortunate position of having the IRS file a Notice of Federal Tax Lien against you, you know that such a lien can have a serious, adverse impact on your credit score. After you pay the tax debt in full, the lien is released. But, it still is listed on your credit report and still can lower your credit score even though it shows as paid and released.
How would you like to get the Notice of Federal Tax Lien off your credit report entirely? Don’t you suppose your credit score would go up by at least a few points if the federal tax lien is no longer there?
Now, if you meet the criteria, you can get the Notice of Federal Tax Lien withdrawn.
What Are the Criteria?
Generally, eligibility requirements are:
- Your tax liability has been satisfied and your lien has been released
- You are in compliance for the past three years in filing:
- All individual and business returns
- All information returns
- You are current on your estimated tax payments and federal tax deposits, as applicable.
But, what if your tax liability has not been satisfied and you still owe money to the IRS? Can you still get the Notice of Federal Tax Lien withdrawn? Again, if you are a qualifying taxpayer and meet the eligibility requirements, you may have your Notice of Federal Tax Lien withdrawn.
Qualifying Taxpayers
- Individuals
- Businesses with income tax liability only
- Out of business entities with any type of tax debt
Eligibility Requirements
- You must be on a Direct Debit Installment Agreement plan
- The current amount you owe must be $25,000 or less
- Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
- You must be in full compliance with other filing and payment requirements
- You must have made three consecutive direct debit payments
- You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
- You cannot have defaulted on your current, or any previous, direct debit installment agreement
Schedule a Consultation Today
If you think you may qualify to have a notice of federal tax lien withdrawn or just want more information about the process, contact my office to schedule a confidential appointment to discuss your situation.
