Are You Trying To Remove A Tax Lien?If you neglect to pay your taxes on time and accumulate large dues, a tax lien can be placed on your personal or real property. The aim of the lien is for the government to recover back taxes. So, once the IRS attaches a tax lien to any part of your income or property, it's time to do something about those unpaid dues! Unless you take some rapid action, you may not only face difficulties in selling your property but you could stand to lose your credit rating as well. The higher the dues the more adversely you will be affected. So, how do you go about removing a tax lien? You can choose to do nothing and wait out the lien until it becomes invalid. However, this is usually an option only when the lien has been on your property for a while and is due to expire soon. If the lien expires without the IRS taking any action it is unlikely that anything further will be done about it. However until the lien expires you will have to live with the fear that it may get extended. If the lien is not settled at all it will continue to show on your credit report and this is likely to influence any future credit that you might want to avail of. But not everyone is ready to wait and watch. It is much more advisable to settle pending dues and get the tax lien removed. This will not only improve your credit rating it will also give you back the legal right to your property. Once the back taxes are settled satisfactorily, the IRS removes the lien within a period of 30 days and it is taken off your credit report. Sometimes the size of the tax debt is so big that paying it back in one go may be next to impossible. You then have another option. You can approach the IRS with an Offer of Compromise. This is essentially a settlement between the delinquent tax payer and the IRS. The settlement may involve your paying the tax back in instalments .Alternatively the IRS may conclude that it is in their best interests to settle for a lower sum instead with a promise that future taxes will be paid on time. An Offer of Compromise is best worked out with the help of a competent tax lawyer. If done successfully, both sides will gain: you, by paying less than what you owe and the IRS, by accepting an assured sum now rather than waiting for a full payment which may not materialize. You can also remove a tax lien temporarily if you want to either sell or refinance your real or personal property. This too would require the help of a tax lawyer. |