February 4th, 2009Delete Tax Liens
If you owe money to the IRS, you know how serious they are about getting their money. They do not mess around. Fail to pay, and they will attach liens to your real estate property, your titled property and your financial accounts. Once a lien has been placed on your assets, you need to remove it as quickly as possible in order to save your credit. You will also not be able to sell the property until you delete all tax liens attached to it.
There are several ways to delete tax liens. Of course, the most obvious way is to pay the tax debt owed. Once this occurs, the IRS will remove the tax lien from your property within 30 days. But if you had the money to pay your tax debt, you would have avoided the tax lien in the first place. So, what can you do to delete tax liens if you cannot pay off your tax debt in full? The following tips will help you out:
• Make a Deal – Sometimes the IRS will settle with you for less than the amount owed. To pursue this option you will need to submit an Offer in Compromise. You might want to hire a tax professional to help you submit an offer as it will need to be for a reasonable amount. If you get the numbers right, you may be able to delete your tax liens for less than what you owe the IRS.
• Payment Plan – Instead of running from the IRS, try to enter into a repayment plan with them. In many cases, you can make timely payments to the IRS until the debt is paid. As long as you are fulfilling the repayment obligations, your property will remain free of liens.
• Temporary Reprieve – If you wish to refinance or sell your property in order to raise the money to pay your IRS debt, you can get your tax lien lifted temporarily.
• Wait it Out – As with all other things, there is a limit to the amount of time that the IRS can pursue you for a debt. If you can wait out a tax lien, it will be dropped after a certain amount of time has elapsed. This is normally about 10 years.
Remember; it is entirely possible to delete tax liens. So, if you are being pursued by the IRS, do not hide from your troubles. Face them head on. What you do today to address your debt will determine if you will be lien free tomorrow.