Tax Lien Withdrawal
What are Federal Tax Liens?
A federal tax lien is the government’s legal claim against a taxpayer’s property when they neglect or fail to pay tax liabilities. As a result, they secure the government’s interests in a taxpayer’s properties by issuing a lien. It ensures that the taxpayer pays their due to the government.
These include:
Real estate
Personal property
Financial assets
The IRS will issue Notice of Federal Tax Lien Form 668(Y) (C) to alert taxpayers and creditors about IRS Tax Lien filing.
Liens affect taxpayers in the following ways:
- Assets — A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
- Bankruptcy — If you file for a bankruptcy, your tax liability, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
- Business — The lien attaches to all business property and to all rights to business property, including accounts receivable
- Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
Requesting a lien “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property. However, Taxpayers are still liable for the amount due.
How to Apply for Lien Withdrawal?
Form 12277: Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien must be completed.
Taxpayers’ balances due should be 25,000 or less to be eligible.
Taxpayers must also meet other IRS requirements to be eligible.
Regardless of where taxpayers are in the tax lien process, the team of experts at Coast One Tax Group is here to help. We have successfully reduced and resolved tax liability for thousands of clients which includes the removal of tax liens.
Call us today at 1-800-901-0885 for a free consultation and let us help you.
