What You Should Know About IRS Lien Removal

If you owe more than $10,000 in federal taxes, you could be subject to a lien and may want to look into an IRS lien removal. As described by the Internal Revenue Service (IRS), a tax lien is “the government’s legal claim against your property when you neglect or fail to pay a tax debt.”

In other words, a lien is designed to protect the government’s “interest” in your property/assets. As frustrating as it can be to face a tax lien, you do have options to get it removed. In this blog post, our IRS tax lawyers in Chicago explain the key things that you need to know about getting a federal tax lien removed.

An Overview of Your Options to Get a Tax Lien Withdrawn By the IRS

There are several ways for a taxpayer to try to get a tax lien removed. In general, the most effective option is by seeking to get the agency to “withdraw” the lien. To do this, you must complete and submit IRS Form 12277, Application for Withdrawal of Tax Lien.

For most people, the federal tax lien withdrawal process is the best path because it essentially erases all records of the tax lien. In other words, it will be like the agency never put on the tax lien in the first place. Here are two common reasons why the IRS agrees with withdrawal (remove/erase) tax liens:

1. Premature Filing or Other Mistake: Not all tax liens are legitimate. There have been plenty of cases in which the tax collection agency jumps the gun or otherwise makes a mistake in placing a lien against a taxpayer. If you believe that a federal tax lien was placed in error, a Chicago lien removal lawyer can help you take action to get it withdrawn.
2. Facilitate Collection: The IRS has the authority to withdraw federal tax liens if it will “facilitate collection” or if doing so is “in the best interests of the government.” In effect, this means it is possible to reach a settlement with the IRS—either through an installment agreement or an offer-in-compromise (OIC) in which the agency agrees to withdraw a tax lien. An experienced Chicago, IL lien removal attorney can help you reach a tax settlement with the IRS.

Notably, under the IRS Fresh Start program, the agency is now willing to offer taxpayers greater opportunity to get tax liens withdrawn (and all records erased) as part of their overall agreement. A tax lawyer with experience handling IRS Fresh Start cases can help you navigate the application process.

Call Our Chicago, IL IRS Lien Removal Attorneys for Immediate Help

At North Suburban Legal Services LLC, our IRS tax lawyers have the skills, legal knowledge, and real-world expertise to help people get tax liens removed. Want more information about IRS lien removal? We are more than happy to help. Contact us now at (312) 909-6089 for a confidential consultation.

Our IRS lien removal attorneys represent people and businesses in Chicago, Cook County, and throughout the surrounding area in Northern Illinois.