Federal Tax Lien protects the government’s interests in all your property; which comprises of real estate, personal property and financial assets.
Whenever IRS feels that the government has a legal right to your property, the IRS files a legal notice through a proper procedure to the Federal Tax Lien. The federal tax lien than informs you about the legal notice.
Methods to avoid Tax Lien
Pay your Debts completely; The IRS federal tax lien release occurs within 30 days after you fully pay your debts
- Discharge of Property; You can request to cancel the lien on a specific property, but through this method the lien on other properties remain as it is.
- Subordination; this method allows the creditors to move ahead of IRS, in this way you can get mortgage or loan more conveniently.
- Withdrawal; you can remove the public records of your property, this prevents IRS form selling your property to other creditors.
- Direct Debt
- You have paid all your tax debts and dues
- You have a Direct Debit Installation Agreement which states that you will fully pay the amount you owe within 60 months
- The amount you owe is $25,000 or less than that
- The type of tax you owe is only income tax
- You have already made three debit payments to IRS