IRS Tax Problems

Where Can I Find Tax Lien Help?

by
Lee Reams II
on
6/19/2017
Where Can I Find Tax Lien Help?

In the event you're faced with a tax lien, you may be panicking and trying to figure out what your options are for getting it dealt with as soon as possible. If you're unsure what to do about your tax lien, consider the following resources.

Tax Professionals Specializing in Resolution Matters

It's always prudent to consult with a tax professional specializing in tax debt matters and highly familiar with the lien process and getting liens released. These professionals market themselves as "tax resolution" or "representation" experts or have a resolution division tucked within a larger tax practice.

Be sure you do your due diligence on tax resolution experts and ensure they are reviewed and licensed professionals, such as tax attorneys, Enrolled Agents, or CPAs, as many fake tax resolution outfits often appear on the market. If anyone you know has run into issues with tax liens, ask them for recommendations for tax law experts who have experience getting tax liens released and can specifically help you with IRS liens or state tax liens.

State Bar Referral Service

In the event you cannot afford a tax law expert out of pocket, look into your state bar referral service or charity legal clinics in your area. Some states and cities require attorneys provide a certain number of pro bono hours per year, and you may be able to find a tax attorney who can assist you with your tax lien. This is especially important if a state tax authority issued the lien, and you want to get a local attorney who is familiar with the state process, not just what the IRS does.

IRS Fresh Start Initiative

If you have a federal tax lien, you can request the IRS to withdraw it in writing if you set up a direct debit installment agreement and stay current on it. While you will still owe the money and the lien remains on your credit report, the actual enforcement of the lien will stop so you can continue with activities that rely on your credit report like opening a new credit card and renting or buying a home.

Additionally, the Fresh Start program expanded access to installment agreements for tax debts not exceeding $50,000. You can set up an installment agreement that does monthly payments for up to six years (72 months). If you owe more than $50,000 you may still be able to apply for an installment agreement but must provide a personal financial statement.

Fresh Start also streamlined the Offer in Compromise program which allows you to make an offer to settle your tax debt for less than the amount you currently owe. Your offer is likely to be accepted if the IRS determines it's what they can reasonably collect from you in the near future but you can't currently pay in a lump sum or payment agreement.

Be aware not at all states have options to settle back taxes or offer similar initiatives if you have a state tax lien, but be sure to check with the state's finance department and see if they offer anything similar.

Taxpayer Advocate Service (TAS)

The Taxpayer Advocate Service has made the taxpayer bill of rights public along with plenty of helpful resources for free. The TAS website has a great deal of information on understanding IRS notices, what you can do if you can't pay your tax bill right now, how to choose a tax preparer, and more.

If you feel you wrongfully received a federal tax lien and your rights were violated, you should consider contacting TAS. For state tax matters, see if there is a similar agency at the state level.

There is a host of paid and free resources for seeking help with a tax lien. Before paying any services for help with tax liens, always do your research on them and make sure they are licensed professionals. Because of the due process in place for federal tax matters, there are more helpful resources for federal tax liens than there are for state-level tax liens (including the option to start a payment plan and getting the lien released that way).

Lee Reams II, writes for TaxBuzz, a tax news and advice website. Reach him at [email protected] or on LinkedIn.

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Lee Reams II

Lee Reams II

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I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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