When a taxpayer fails to pay the tax that is due on time, the Internal Revenue Service (IRS) may impose a federal tax lien on the taxpayer’s assets. This lien serves to protect the government’s interest in the taxpayer’s property. The lien attaches to all assets, including real estate, personal property, and financial assets. A Notice of Federal Tax Lien is filed in order to alert the taxpayer’s creditors of the government’s right to the assets. This Notice of Federal Tax Lien is a public document.
Removing a Notice of Federal Tax Lien Is No Easy Feat
There are several different avenues for a taxpayer facing this lien to consider. A knowledgeable attorney can assist the taxpayer in choosing the option that best suits his needs. One such option is to obtain a Withdrawal, which removes the public Notice and assures the public that the IRS is not in competition for your assets. The Internal Revenue Commissioner’s Fresh Start initiative was implemented in 2011, and one aspect of this initiative gives taxpayers two additional options for obtaining a Withdrawal.
To assess whether you might be eligible for a Withdrawal under the Fresh Start initiative, ask yourself the following questions:
- Have you paid your outstanding tax liability in full?
- Has your federal tax lien been released?
- Are you in compliance with your tax filings for the past three years? This includes your individual tax returns, your business tax returns, and any information returns.
- Are you current on your estimated tax payments, if applicable?
- Are you current on your federal tax deposits, if applicable?
If the answers to the above questions are “yes”, you may qualify for a Withdrawal that can get the Notice of Federal Tax Lien removed and free up your assets. We hope that you found this article about Withdrawals helpful. If so, we encourage you to share it with your friends and family on Facebook. Federal tax liens affect many people throughout the U.S., and one of your loved ones may benefit from this information.