IRS Tax Lien Attorney
There are certain ways that an IRS Tax Lien Attorney can remove a tax lien. We will discuss those below.
But the best way to get rid of an IRS tax lien is to settle the back tax.
Explore the steps below of an IRS Offer in Compromise. This is the preferred way to remove a tax lien. Other methods are discussed below.
(1) Current & Compliant
The first step your IRS Tax Lien Attorney will take with an IRS Offer in Compromise is making sure that you are current with all of your returns and present tax obligations. Without this important step, the IRS will all but certainly reject your Offer. We go the extra mile and pull your IRS transcripts and make sure that you are 100% compliant to submit and Offer.
(2) Financial Analysis
The next step we take is an in-depth analysis of your finances, including your bank statements. We know how the IRS will evaluate an Offer in Compromise. We go through the same steps to figure out exactly how much you should Offer the IRS and to make sure there are no skeletons in the closet we should be aware of. This step typically takes the most time.
(3) IRS Review
It's now out of our hands and into the IRS's hands. But we still stay involved and work with the IRS. Most of the time, the IRS will have questions or need additional information. We work with them to move the Offer along. If we disagree with the IRS, don't worry, we'll file an appeal. Appeals are included with our Offer in Compromise engagements, so we've got you covered.
(4) Accepted Offer
The moment you have been waiting for! Typically, it is about 12-18 months from start to finish, but the IRS accepts the Offer, you satisfy the Offer, and the back tax is completely wiped out. This is the fresh start that we have all been waiting for! Remember, once an Offer is accepted, you have to stay current on your taxes for the next five years or the Offer defaults.
What other methods are there to remove an IRS tax lien?
As an IRS Tax Lien Attorney, I know the various ways to remove tax liens. Besides the Offer in Compromise, there are four other methods to deal with an IRS ta lien.
As an IRS tax lien attorney for Texas, I get asked a lot about dealing with federal tax liens. Besides dealing with the lien through an IRS Offer in Compromise or other tax resolution, there are four other ways to deal with a tax lien.
Many times, after an IRS audit is assessed against a taxpayer, the IRS may file a tax lien against you, which comes as a surprise to many!
(1) DDIA Lien Withdrawal (a good IRS tax lien attorney uses this trick a lot)
If you have a tax lien against you and enter into an IRS direct debit installment agreement, the IRS will typically agree (rather easily) to withdrawal the tax lien. However, there are a few requirements before they will grant this request.
- Balance must be under $25,000
- You never defaulted before on a direct debt installment agreement
- Your IRS balance will be full paid in 6 years or less (and before the statute of limitations)
- You are current with your estimated tax or withholding requirements
(2) IRS Lien Subordination
If you are trying to get a cash-out refinance of your mortgage to pay down some of your tax debt, or, you are trying to get a lower mortgage payment, the IRS may grant a limited lien subordination.
This just means that the lien is “released” secondary to the mortgaging bank, but only for purposes of the real estate the loan is attached to.
(3) IRS Lien Discharge
If you are trying to sell an asset and will use the proceeds to pay down your tax liability, the IRS will grant a discharge under certain circumstances. Or, if there is no equity (common in certain real estate transactions), the IRS may discharge the lien for that particular asset.
(4) IRS Lien Withdrawal
Finally, if the tax lien is causing some kind of hardship that will limit your ability to earn an income, the IRS may allow the withdrawal. You will have to show that your job or source of income depends on not having a tax lien.
As an example, if your job requires a security clearance and the tax lien will prevent you from getting a passing security clearance, the IRS will typically allow the withdrawal. They understand that without the job, you will likely not have money to pay the back tax. So, it is not only your best interest, but also the government’s best interest.
Get a Fresh Start with an IRS Tax Lien Attorney Today
If you are ready to have an IRS Tax Lien Attorney for Texas look at your case to see if you qualify for an Offer in Compromise, click here to get the process started today. Or call us directly for a free consultation at 330-331-7611
