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.
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:
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.