Rush Tax Relief – Federal Tax Lien Options

Hello and welcome to the third installment of our Rush Tax Relief – Federal Tax Lien section. In our first blog post, Rush Tax Relief – Federal Tax Lien, we went over what a Federal Tax Lien is and how to know if you have one filed against you or not (hint: the IRS will send a Notice of Federal Tax Lien). In our previous post, the second in the series, we discussed how to avoid a Federal Tax Lien from turning into something worse – an IRS levy. As we showed in that post, the IRS’s preferred method to avoid the Federal Tax Lien is to repay the tax debt owed immediately and in full. However, we also noted that on the IRS’s page, Understanding a Federal Tax Lien, as of Dec. 21, 2020, the IRS has also made it known that they are open to some negotiation. According to the page, “When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.”

In this blog post, we’ll talk more about some of those options. 

What are my Federal Tax Lien options?

According to our Federal Tax Lien Service Page, if you have received a Notice of Federal Tax Lien, your options are as follows:

• “Paying the debt in full
• Applying for an Installment Agreement
• Applying for a Partial Payment Installment Agreement
• Applying for Tax Lien Discharge
• Applying for Tax Lien Subordination”

Depending on the amount owed, paying the debt in full isn’t always an option for many people. So let’s talk a look at some of the other options that our experienced tax resolution specialists can help you or your business with today.

Federal Tax Lien – Applying for an Installment Agreement

We’ve recently discussed Installment Agreements at length. To learn more about Installment Agreements, which allow taxpayers to repay their tax debt in monthly installments over a period of time, check out our previous posts: Tax Resolution Services: Installment Agreement, Tax Resolution Services: Types of Installment Agreements, and Tax Resolution Services: Types of Installment Agreements, Continued.

Federal Tax Lien – Applying for a Partial Payment Installment Agreement

The Partial Payment Installment Agreement, also known as the IRS PPIA, is a type of Installment Agreement, like the ones mentioned above, but is unique in the fact that it can allow taxpayers to settle their debt for less than the total amount originally owed. But there are some potential disadvantages too. To learn more about the IRS PPIA, check out our previous posts: Partial Payment Installment Agreement – What is it? and

Tax Resolution Services: Installment Agreements vs the IRS PPIA.

Federal Tax Lien – Applying for Tax Lien Discharge

According to our Tax Lien Discharge Service Page, “a Tax Lien Discharge removes your tax lien from a specific property. If you request a tax lien discharge and the IRS accepts your request, they will give you a Certificate of Discharge. A Certificate of Discharge allows you to refinance or sell the property named on your application.” We’ll discuss the Tax Lien Discharge in greater detail in our next blog post, including when and why you should apply for one, as well as how to apply.

Federal Tax Lien – Applying for Tax Lien Subordination

According to our Tax Lien Subordination Service Page, “Tax Lien Subordination does not remove a federal tax lien on a property however, it gives a creditor the opportunity to move ahead of the IRS, meaning that that creditor has prioritized interest to your assets, ahead of the IRS. This makes it easier to receive a loan, mortgage or refinance a house.” Like the Tax Lien Discharge, we will have a blog post explaining Tax Lien Subordination in greater detail coming up soon, similarly including when and why you should apply for Tax Lien Subordination, as well as how to apply.

Next up, we’re talking about Rush Tax Relief – Federal Tax Lien Discharge. See you there!

Sources

https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien