Feeling Trapped by an IRS Tax Lien?

Facing an IRS tax lien can be stressful, but there are affordable options available to help you regain control over your finances.

Tax Lien vs. Tax Levy: Key Differences

While “tax lien” and “tax levy” are often used interchangeably, they represent different legal actions. A tax lien is a legal claim the IRS places on your property to secure payment of back taxes. A tax levy, in contrast, allows the IRS to seize your property to satisfy a tax debt. Tax liens typically arise when a tax bill is ignored or unpaid. When this occurs, the IRS files a Notice of Federal Tax Lien, alerting other creditors of its legal claim. Credit bureaus may also record this notice on your credit report.

Managing an IRS Tax Lien

A tax lien can affect both current and future assets. Even bankruptcy may not remove it immediately. The simplest way to clear a lien is to pay your taxes in full; the IRS typically releases it within 30 days. If full payment isn’t possible, consider these alternatives:

Installment Agreement

If a lien hasn’t been filed yet, you may prevent it by arranging a guaranteed installment plan (up to $10K) or a streamlined plan (up to $25K), allowing monthly payments until your debt is cleared.

Offer in Compromise

Negotiate with the IRS to settle your debt for less than owed. Once the agreed amount is paid, the IRS will release the lien.

Tax Lien Withdrawal

If a lien is filed in error, you can request a withdrawal. The IRS also offers additional withdrawal options under the Fresh Start program.

One withdrawal option is available if all of the following are true:

  • Your tax debt is fully paid and the lien has been released
  • All required individual, business, and information returns for the past three years are filed
  • Estimated tax payments and federal deposits, if applicable, are current

If an IRS tax lien is affecting you, don’t wait to act. Sky View Tax Resolution’s experts can guide you through effective solutions and help protect your assets. Schedule your free consultation today.

“I received a notice of intent to lien from the IRS. Sky View Tax Resolution acted immediately, negotiated with the IRS, and resolved the issue quickly. Their support made a stressful situation much easier.”
— Douglas G.

Common Questions About IRS Tax Liens

When do tax liens expire?

IRS tax liens generally last 10 years from the date of assessment, although you may receive notices sooner depending on your existing tax situation.

Can a state tax lien prevent employment?

Tax liens may appear on background checks. For jobs requiring security clearances or access to sensitive information, liens can impact eligibility. Consulting a tax professional can help mitigate risks.

Can I buy a car with a tax lien?

Tax liens can affect loan approval and interest rates, potentially making it more difficult to finance a vehicle.

What are tax lien certificates?

Tax lien certificates are issued in some states when property taxes go unpaid. Investors may purchase these certificates, essentially stepping into the role of the taxing authority for that property.

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