Contributing to the most significant problems arising from non-payment of taxes are Federal tax liens. Any property subject to a lien claim from the IRS becomes legally unavailable for sale and problematic for borrowing money against it. The knowledge of filing requests to withdraw or discharge federal tax liens matters most when assets get seized as a result of tax debts.
The following article provides the necessary steps and methods for obtaining a withdrawal or discharge following an IRS seizure of assets.
Difference Between Tax Lien vs Tax Levy
There are some differences between tax lien and tax levy, and for that, one needs to undertsnad the what are the penalties one is facing for missing tax payments. A person can hire the best tax attorney from Los Angeles or from another location to deal with the problem head-on and recover the case.
However, to understand the nuances of the consequences, it’s important to understand tax liens and levies.
Tax Lien: A tax lien is a legal claim that the IRS makes from a person when they can’t refinance the tax debt and the IRS owes quite a lot amount from the taxpayer. Here, a person needs to give some of their assets they have to recover IRS the debt that they get from the individual.
Tax Levy: Tax levy is the last step that the IRS takes as the authority at that time to auction the property or any physical asset and sell that to recover the debt that the person owes to the IRS.
How to Request a Tax Lien Withdrawal
In the tax lien process, the IRS doesn’t sell the property; it only takes possession of the asset, and a person, the moment they repay the tax debt with the penalties, can get back the property from the authority.
1. Pay the Tax Debt in Free
The first thing that a person can do, and is the best option among the others, is to completely resolve the issue with the full payment of the tax debt. If one finds paying that amount in a single term challenging, then they can choose the option of the offer in a compromise where they can pay off the debt within a month.
2. Choosing Direct Debit Installment Agreement
Another form of a request for the withdrawal of the tax lien is going in the DDI Agreement, where the IRS will directly deduct a portion of the amount from the bank account, and completing that for several months, one can request for the withdrawal of the tax lien from the authority.
The regular installment of payments directly from your bank account gives confidence to the IRS, thus enabling them to withdraw the asset from the possession of the IRS. One can take the help of an attorney for IRS problems to resolve this isssue and finally clear all the tax debts.
Apart from that, there are IRS mistakes that can also sometimes happen, and if that’s the case, then one must immediately hire a consultant attorney to show them their error and win back the possession and tax credits.
