KOWAL
TAX CLINIC
KOWAL
TAX CLINIC
Your Public Defender against the IRS when you need tax debt relief . . .

RELEASE OF IRS LIEN

Liens give the IRS a legal claim to your property.

Serving  clients in New York, New Jersey and Connecticut
Harborside Financial Plaza
Jersey City, NJ 07311
Call 1-888-IRS-0060
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IRS Has Filed A Tax Lien
Getting A Tax Lien Released
The IRS will issue a Release of the Notice of Federal Tax Lien:

  * Within 30 days after you satisfy the tax due (including interest and other additions) by paying the debt or by having it adjusted, or
  
   * Within 30 days after we accept a bond that you submit, guaranteeing payment of the debt.

In addition, you must pay all fees that a state or other jurisdiction charges to file and release the lien. These fees will be added to the amount you owe. Refer to Publication 1450, Request for Release of Federal Tax Lien (PDF).

Usually 10 years after a tax is assessed, a lien releases automatically if we have not filed it again. If we knowingly or negligently do not release a Notice of Federal Tax Lien when it should be released, you may sue the federal government, but not IRS employees, for damages.

Payoff Amount

The full amount of your lien will remain a matter of public record until it is paid in full, including all accruals and additions. However, at any time you may request an updated lien payoff amount to show the remaining balance due by calling the toll-free customer service telephone number at 1-800-913-6050. An IRS employee will issue you a letter with the current amount that must be paid before release of the Notice of Federal Tax Lien.

Applying for a Discharge of a Federal Tax Lien

If you are giving up ownership of property, such as when you sell your home, you may apply for a Certificate of Discharge. Each application for a discharge of a tax lien releases the effects of the lien against one piece of property. Note that when certain conditions exist, a third party may also request a Certificate of Discharge. If you're selling your primary residence, you may apply for a taxpayer relocation expense allowance. Certain conditions and limitations apply. Refer to Publication 783, Instructions on How to Apply for a Certificate of Discharge of Property from the Federal Tax Lien (PDF).

Making the IRS Lien Secondary to Another Lien

In some cases, a federal tax lien can be made secondary to another lien. That process is called subordination. Refer to Publication 784, How to Prepare Application for Certificate of Subordination of Federal Tax Lien. (PDF)
Withdrawing Liens

By law, a filed notice of tax lien can be withdrawn if:

   * The notice was filed too soon or not according to IRS procedures,
   * You entered into an installment agreement to pay the debt on the notice of lien (unless the agreement provides otherwise),
   * Withdrawal will speed collecting the tax, or
   * Withdrawal would be in your best interest (as determined by the Taxpayer Advocate), and in the best interest of the government.

The IRS will provide you with a copy of the withdrawal. You can send a written request that a copy be sent to other institutions.
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Phone: 1-888-IRS-0060
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A Federal Tax Lien can wreak havoc when filed in the public records of the county courthouse where you reside. 
  • If you own real property in other counties, a lien will be filed there, too.
  • The lien attaches to all property you now own or will acquire in the future.

Now for the good news.

Frequently we can prevent the IRS or New Jersey/New York from filing liens. Contact us quickly in order for us to take a proactive role in keeping the tax lien off the public record. 
  • If a lien is filed you will be given notice of your right to appeal. 
  • It is possible to have the lien withdrawn when the withdrawal will facilitate the collection of the tax.

Notice of Federal Tax Lien

Liens give IRS a legal claim to your property as security or payment for your tax debt. A Notice of Federal Tax Lien may be filed only after:
  • IRS assesses the liability;
  • IRS sends you a Notice and Demand for Payment - a bill that tells you how much you owe in taxes; and
  • You neglect or refuse to fully pay the debt within 10 days after you receive notification.
Once these requirements are met, a lien is created for the amount of your tax debt.

By filing notice of this lien, your creditors are publicly notified that the IRS has a claim against all your property, including property you acquire after the lien is filed. This notice is used by courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate.

The lien attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivable, if you are a business).
Caution!
Once a lien is filed, your credit rating may be harmed. You may not be able to get a loan to buy a house or a car, get a new credit card, or sign a lease. Therefore it is important that you work to resolve your tax liability as quickly as possible, before lien filing becomes necessary.

Contact Kowal Tax Clinic today for help.
Call 1-888-IRS-0060