Removing a Tax Lien

By Avery Mills | May 21, 2020 8:04:00 AM

632A lien is placed against a property when a person has unpaid taxes. This lien makes it so if the property is sold, the IRS will receive the money they are owed before the taxpayer receives their share.

In most cases, you will be notified about a lien after it has been placed. This usually happens about 10 days after a written demand for outstanding payments is issued. If the lien was done in error, you need to reach out to the IRS as soon as possible. They will then check to make sure you don’t owe any outstanding balances. After this, you’ll be ‘withdrawn’ from the lien which is like it never happened.

If it wasn’t done in error and you owe money, you will need to come up with a plan to pay off your balance. Reach out to the IRS to see if you can set up a payment installment plan if you don't have the funds abailable in full.. It may also be helpful to reach out to a tax account, a certified public accountant, or an enrolled agent to help you.

Once the lien has been cleared, you will receive a copy of the release from the IRS which you will then need to send to the credit bureaus so they can make the necessary updates to your credit report.

Discalimer: This article is intended for educational purposes and not as legal or tax advice. If you have specific questions regarding your situation, please reach out to a tax accountant or attorney.

Topics: tax day, taxes

Author: Avery Mills