Tax Lien Removal: How to Remove a Tax Lien

It's no wonder that tax relief specialists thrive in such great numbers - taxes are seriously complicated and repercussions of failing to pay tax are significant. Once you get stuck with a tax lien, you feel trapped. So what can you do to remove a tax lien?

If you're in trouble with the IRS, you will benefit from the information below. But who would turn down the help of a former 20-year IRS revenue officer? I recommend you check out "Secrets of the IRS Collection Process" for the valuable inside-scoop, which also includes advice from a tax professional.

A tax lien is placed on either your personal or real property when you fail to pay tax within a given period of time. The IRS gains legal claim on property until the lienor can pay the tax that is owed, the idea being to encourage the lienor to pay the tax. If the IRS has placed a tax lien on you, it will seriously affect your credit standing and will either render sale of property difficult or impossible. Removing a tax lien should be a huge priority for you, as you're no doubt well aware.

1. One option is to wait it out until the tax lien expires. For several reasons, this is not the best option. There's a set time period in which a tax lien can be acted upon. For tax liens more recent than November 6, 1990, the tax lien becomes unenforceable after 10 years. For all liens prior to November 6, 1990, the tax lien becomes unenforceable after six. So if you have had a tax lien for a considerable amount of time and the IRS hasn't seen fit to act upon the tax lien, perhaps just waiting for the period to expire is an option you wish to consider. If the period expires with no extension of the tax lien, then the possibility of an action on the tax lien has been removed. It certainly requires the least amount of effort, but you have to live with the possibility that the tax lien will be extended before it expires. Not only that, but the tax lien can show on your credit report forever if you don't pay anything to remove the tax lien.



2. Consequently, not everyone will be satisfied just sitting and waiting to remove the tax lien and gain the legal rights back for their property, and who could blame them? Since what caused the tax lien in the first place was failing to pay taxes, what will remove the tax lien is payment of the due tax. If you pay the tax that is due, then your tax lien should be removed within 30 days, and can be removed from your credit report. Upon removal of the tax lien, you may receive proof of it in the form of a certificate copy.
3. Paying those back taxes is easier said than done sometimes, so there's another option to consider when you need to remove a tax lien: strike a repayment deal. Let's look at why the IRS might decide to let the period expire without hounding you any further or acting upon the tax lien. It costs them money every extra step of the way in getting hold of taxes that are owed. The IRS has made a science of figuring out whether that extra effort is worth the money they can ultimately expect to collect through it. Hence, the hesitation - the IRS may determine that it's not in their best interest to proceed in collecting on a tax lien. While this is good for you, it does nothing to remove the tax lien from your credit report. The tax lien is still in effect, whether the IRS acts upon it or not.
   
   All this means that you have an opportunity to submit what is called an Offer in Compromise. Essentially, you offer an amount that is less than the full tax amount you owe, and the IRS can decide if they agree to accept the offer and remove the tax lien. If the Offer is well calculated, you will be able to remove your tax lien by paying the smaller amount than what you owe and promising to pay your taxes on schedule for an extended period of time. You'll want to hire a professional to help you in this effort, however - reomving a tax lien using this strategy is not as easy as some make it sound. But if you're successful, then both sides are happy, since the IRS has gained slightly more than what they ultimately expected and you have removed the tax lien.
4. If it becomes necessary for you to refinance or sell your real or other property before you can remove your tax lien by paying your due tax completely, then you can pursue getting the tax lien lifted for the short period of time it takes to refinance or sell. This is just a temporary removal of your tax lien. For this option, it would also be best to seek the help of tax relief professionals, whom you can find online or through a phone book. Check out Taxes and Tax Lien Help or do a Google search for "tax lien removal." I definitely recommend getting an IRS tax attorney or accountant; you need IRS help at this point.