How to Refinance IRS Tax Lien?
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The IRS files a public document called IRS Tax Lien, to notify creditors that the government has a legal right to your property until the IRS tax lien is paid in full! For more information, refer to Publication 594, The IRS Tax Lien Collection Process.
Refinance Your IRS Tax Lien To Pay The IRS!
You need to refinance you tax lien as soon as possible to help minimize interest and penalties, it is recommended that you pay your taxes in full. However, if you’re unable to pay in full, you can request a monthly Repayment Agreement or Offer in Compromise. These IRS repayment payment plans allow you to pay your taxes in installments over time, to pay less than you owe, or both. It’s also important to stay current on your payments for future taxes. This means making your estimated tax payments, withholding payments, or federal tax deposits as required by law.
Electronic Monthy IRS Payment Plan –
We offer several electronic payment options. You can pay online, by phone or from your mobile device with the IRS2Go app. Go to IRS. gov/payments for the payment options, telephone numbers and easy secure ways to pay your taxes.
Electronic Federal Tax Payment System
The Electronic Federal Tax Payment System is a free service that gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online.
IRS Direct Pay
IRS Direct Pay is free and available at IRS.gov/DirectPay, where you can securely pay your taxes directly from your checking or savings accounts without any fees or pre-registration. Schedule payments up to 30 days in advance, and receive instant confirmation that you submitted your payment
Debit or credit card
You can pay your taxes by debit or credit card. Both paper and electronic filers can pay their taxes by phone or online through any of the authorized debit and credit card processors. Though the IRS does not charge a fee for this service, the card processors do. Go to IRS.gov/ payments for authorized card processors and their phone numbers.
To pay your federal taxes quickly on the go, use the IRS2Go mobile app. IRS2Go provides easy access to Direct Pay, offering you a free, secure way to pay directly from your checking or savings account. You can also make a debit or credit card payment through an approved payment processor for a fee. You can download IRS2Go from Google
Play Store, the Apple App Store or Amazon Appstore, to pay your taxes anytime, anywhere
Sell The property of property
A “discharge” removes the lien from a specific property. There are several Internal Revenue Code (IRC) provisions that determine eligibility. For more information, refer to Publication 783, Instructions on How to Apply for Certificate of Discharge From Federal Tax Lien and the video Selling or Refinancing when there is an IRS Lien.
Subordination Of Federal Tax Lien
“Subordination” does not remove the lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. To determine eligibility, refer to Publication 784, Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien and the video Selling or Refinancing when there is an IRS Lien.
A “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due. For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) and the video Lien Notice Withdrawal.
Two additional Withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative.
One option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release. General eligibility includes:
Your tax liability has been satisfied and your lien has been released; and also:
- You are in compliance for the past three years in filing – all individual returns, business returns, and information returns;
- You are current on your estimated tax payments and federal tax deposits, as applicable.
The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:
- You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
- You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
- 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 are in full compliance with other filing and payment requirements
- You have made three consecutive direct debit payments
- You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.
How a Lien Affects You
- Assets — A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
- Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
- Business — The lien attaches to all business property and to all rights to business property, including accounts receivable.
- Bankruptcy — If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
Avoid a Lien
You can avoid a federal tax lien by simply filing and paying all your taxes in full and on time. If you can’t file or pay on time, don’t ignore the letters or correspondence you get from the IRS. If you can’t pay the full amount you owe, payment options are available to help you settle your tax debt over time.
Lien vs. Levy
A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.
Centralized Lien Operation — To resolve basic and routine lien issues: verify a lien, request lien payoff amount, or release a lien, call the IRS direclty!
Collection Advisory Group — For all complex lien issues, including discharge, subordination, subrogation or withdrawal; find contact information for your local advisory office in Publication 4235, Collection Advisory Group Addresses .
Centralized Insolvency Operation — If you are questioning whether your bankruptcy has changed your tax debt, call 800-973-0424.
How to Get Remove an IRS Tax Lien once you Refinance?
Refinancing to Pay Off Your Tax Lien In Full – This is the best way to get rid of an IRS federal tax lien. The IRS releases your lien within 30 days after you refinance your tax debt.
The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has an IRS lien on your property. For more information, refer to Publication 594, The IRS Collection Process .
IRS Tax Lien Collection Due Process
The purpose of a Collection Due Process hearing is to have Appeals review collection actions that were taken or have been proposed. After Appeals has made their determination and you do not agree, you can go to court to appeal the Appeals’ Collection Due Process determination. You can request a Collection Due Process hearing if you receive any of the following notices:
• Notice of Federal Tax Lien Filing and Your Right to a Hearing
• Final Notice—Notice of Intent to Levy and Notice of Your Right to a
• Notice of Jeopardy Levy and Right of Appeal
• Notice of Levy on Your State Tax Refund—Notice of Your Right to
• Notice of Levy and of Your Right to a Hearing
To request a Collection Due Process hearing, complete Form 12153, Request for a Collection Due Process or Equivalent Hearing or a written request containing the same information as contained in Form 12153, and send it to the address on your notice. You must request a Collection Due Process hearing by the date indicated in the notice we send you (for proposed levies, that date is 30 days from the date of the letter). The request must be filed timely to preserve your right to judicial review of the determination issued in your Collection Due Process hearing. If your request for a Collection Due Process hearing is not timely, you can request an Equivalent Hearing within one year from the date of the notice, but you cannot go to court if you disagree with the Appeals’ decision. During a Collection Due Process Hearing, the 10-year period for collecting taxes is suspended and we are generally prohibited from seizing (levying) your property if seizing your property is the subject of the hearing. We are permitted to seize your property during an
Equivalent Hearing or a Collection Due Process hearing about the filing of a Notice of Federal Tax Lien, but normally we will not seize property during these hearings. The 10-year period for collecting taxes is not suspended during an Equivalent Hearing. You are entitled to only one Collection Due Process lien hearing and one levy hearing for each tax period or assessment. You are entitled to propose collection alternatives, such as entering into an installment agreement or an offer-in-compromise, for consideration by Appeals in the hearing. It may be necessary for you to submit financial information or tax returns to qualify for such collection alternatives. All issues should be raised and all necessary supporting information presented to Appeals at the hearing. You are prevented from raising issues during a judicial review that were not properly raised with Appeals in the Collection Due Process hearing. Your Appeals
conference may be held by telephone, correspondence, or, if you qualify, in a face-to-face conference at the Appeals office closest to your home or place of business. You may be denied a face-to-face conference if you raise issues that are deemed frivolous or made with a desire solely to delay or impede collection. For a nonexclusive listing of issues identified by the IRS as frivolous, see “The Truth About Frivolous Tax Arguments” on IRS.gov. For
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