A Review Of Four Effective Tax Lien Solutions

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Taxes Don't Have to Be Taxing Nobody loves paying taxes, but doing the paperwork to submit your taxes can also be quite a nuisance. Luckily, there are tax preparation professionals who can do this paperwork for you. They'll make sure you are getting all of the credits and deductions you are eligible for so you don't pay more than the government requires. But even if you hire someone else to do your taxes, it is important to know the basics. You need to know what deductions are, when taxes are due, and so forth. Learn about these and other tax topics as you dig into our blog posts.



A tax lien is a government claim on property or money belonging to the taxpayer. A tax lien can be filed for various reasons, but it often occurs when someone has failed to pay taxes they owe to the IRS. Tax liens are a big issue as they can prevent someone from receiving a loan, securing a mortgage, renting an apartment, or even getting a job. Moreover, the IRS can confiscate your property to settle the tax debt. Thus, individuals should seek feasible solutions to their tax liens. Individuals charged by the IRS should hire tax consultants for reliable advice on the most applicable tax lien solutions. This article discusses some of the available tax lien solutions.

Solution #1: Partial Payment Offers

Making a partial payment offer can resolve tax liens quickly because it reduces any penalties assessed by the IRS. It also may reduce the amount owed overall in some cases if the taxpayer has made other arrangements with the IRS. Examples of arrangements that individuals may make with the IRS include installment agreements or direct debit arrangements to settle their tax liens over a pre-determined time.

Solution #2: Installment Agreement

An installment agreement is an option that allows taxpayers to pay off their tax liens in periodic payments as agreed with the IRS. Unlike a partial payment arrangement, an installment arrangement does not require money upfront. Moreover, it gives the taxpayer more time to pay what is owed and can reduce some penalties that would otherwise be assessed on top of the amount still due.

Solution #3: Offer In Compromise

This option allows people to pay off their tax liens for less than the actual amount owed by demonstrating financial need. It requires individuals to prove they cannot pay their debts through other means or essentially cannot afford what they owe with all available assets considered. This option works best when significant non-exempt assets, such as cash savings or real estate equity, are available for settlement. 

Solution #4: Ask For A Tax Lien Release

Requesting the IRS for a tax lien release is the quickest way out of your current financial situation, especially if you want to avoid bankruptcy or foreclosure. This process has no limits on the amount of time it takes and can be done at any federal level office dealing with levies, seizures, and foreclosures, usually called "Disaster Areas". You need to make an appointment with an official from these disaster areas before showing up at their office with either cash or a money order to cover the exact amount owed on your tax lien. The IRS should release your tax lien when the owed taxes are paid in full.

For more information on tax liens, contact a professional near you.

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