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Lien Release

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A lien can be a significant financial burden and can affect your creditworthiness and ability to secure loans. Understanding what a lien is, how to get it released, and how to prevent it can help you manage your financial health more effectively. This article will explore what a lien release is, steps to prevent a lien, and how Priority Tax Relief can assist in managing and resolving lien issues.

What Is a Lien?

A lien is a legal claim by the IRS against your property due to unpaid tax debt. This claim ensures that the government can secure the amount owed by the taxpayer. The lien can attach to all your assets, including real estate, personal property, and financial assets, as well as future assets acquired during the duration of the lien.

When the IRS files a Notice of Federal Tax Lien, it alerts creditors that the government has a legal right to your property. This notice can significantly impact your credit score and ability to secure financing.

How to Get a Lien Released

Releasing a lien involves satisfying the debt or making arrangements with the IRS. Here are the primary methods to get a lien released:

  1. Pay the Tax Debt in Full: The most straightforward way to release a lien is to pay the tax debt in full. Once the debt is satisfied, the IRS will release the lien within 30 days.

  2. Set Up an Installment Agreement: Entering into a payment plan with the IRS can lead to the release of the lien. Once you are in compliance with the agreement and have made a few payments, you can request the IRS to withdraw the lien.

  3. Submit an Offer in Compromise: If you cannot pay the full amount, you may qualify for an Offer in Compromise, where the IRS agrees to settle your tax debt for less than the full amount owed. Acceptance of an Offer in Compromise can result in the lien being released.

  4. Request a Lien Subordination: This doesn’t remove the lien but allows other creditors to move ahead of the IRS, which can make it easier to get a loan or mortgage.

  5. Prove Financial Hardship: If you can demonstrate that the lien is causing significant financial hardship, the IRS may consider releasing it.

Preventing a Lien

Preventing a lien involves proactive tax management and compliance. Here are some strategies to help avoid a lien:

  1. File and Pay Taxes on Time: Ensure that you file all required tax returns and pay any taxes owed by the due date. This is the best way to avoid a lien.

  2. Set Up a Payment Plan Early: If you cannot pay your tax debt in full, contact the IRS to set up an installment agreement as soon as possible. Being proactive can prevent the IRS from filing a lien.

  3. Keep Accurate Records: Maintain accurate and up-to-date financial records to ensure that your tax filings are correct and timely.

  4. Respond Promptly to IRS Notices: If you receive a notice from the IRS, respond promptly to address any issues before they escalate to a lien.

  5. Seek Professional Help: Consult a tax professional or tax relief service to help manage your tax obligations and avoid potential liens.

How Priority Tax Relief Can Help With Lien Release?

Priority Tax Relief is a tax resolution service that assists taxpayers in resolving complex tax issues, including liens. Here’s how we can help:

  1. Expert Consultation: We provide expert consultation to assess your tax situation and determine the best strategy for releasing the lien.
  2. Negotiation with the IRS: Priority Tax Relief can negotiate with the IRS on your behalf to set up payment plans, submit Offers in Compromise, or request a lien release due to financial hardship.
  3. Documentation and Filing: We assist in preparing and filing the necessary forms and documentation to request a lien release or appeal a lien.
  4. Offering Preventative Strategies: We offer guidance on how to prevent future tax issues through proper tax planning and compliance.

Contact Priority Tax Relief at 888-708-2872  to learn more about Lien Release and schedule a consultation.

Cancellation: Any cancellation of services must be made in writing and delivered to 400 S. Jefferson, Suite 100, Spokane, WA 99204 within three business days of the date of this agreement. If the client cancels services during this time, Company, reserves the right in its sole discretion to convert the agreed fee payment structure to an hourly one by which Client agrees to pay Company an hourly rate of five hundred fifty dollars an hour, entitling Client to a refund of up to fifty percent of all monies paid beyond the ten day money back guarantee in cases where no aggressive collection action is in place.

Frequently Asked Questions: Lien Release

What are back payroll taxes?

Back payroll taxes refer to unpaid employment taxes that businesses are required to withhold and pay to the IRS. These taxes include federal income tax, Social Security, Medicare, and federal unemployment taxes. Failure to remit these taxes on time results in back payroll taxes.

The consequences of not paying payroll taxes include significant penalties and interest, IRS liens and levies on business assets, personal liability through the Trust Fund Recovery Penalty (TFRP), and potential criminal charges that could lead to fines and imprisonment.

To prevent falling behind on payroll taxes, ensure regular and timely payroll tax payments, maintain accurate records, budget specifically for payroll taxes, stay informed about tax law changes, and consult with a tax professional or accountant.

The Trust Fund Recovery Penalty (TFRP) is a penalty imposed by the IRS on individuals who are responsible for collecting, accounting for, and paying payroll taxes but fail to do so. This penalty holds these individuals personally liable for the unpaid taxes.

You can resolve back payroll taxes by setting up an installment agreement to pay the debt over time, submitting an Offer in Compromise to settle the debt for less than the full amount owed, or proving financial hardship to potentially reduce penalties and interest. Consulting a tax resolution service like Priority Tax Relief can also help.

If you receive a notice from the IRS about unpaid payroll taxes, respond promptly to address the issue. Ignoring the notice can lead to more severe consequences. Consider consulting with a tax professional or a tax resolution service to help manage and resolve the situation.

Priority Tax Relief can assist by providing expert consultation to assess your payroll tax situation, negotiating with the IRS on your behalf, preparing and filing necessary forms and documentation, and offering guidance on preventative strategies to avoid future payroll tax issues.

Yes, using a payroll service can help prevent back payroll taxes by automating tax withholdings and payments, ensuring timely and accurate remittance to the IRS, and maintaining accurate records of payroll transactions. A payroll service can reduce the risk of human error and non-compliance.

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