Qualifying for a Lien Withdrawal When You Have a Direct Debit Installment Agreement

When you fail to pay the tax money that you owe to the IRS, the government may impose a federal tax lien on your assets. This lien serves to protect the government’s interest in your assets. As part of the lien process, the IRS files a public document called the Notice of Federal Tax Lien. This document puts your creditors on alert of the government’s right to your property. To remove the notice, you make seek a withdrawal.

Obtaining a Notice of Lien Withdrawal After a Direct Debit Installment Agreement

While there are various options for obtaining a withdrawal of the lien notice, achieving this result may be possible if you have entered into a Direct Debit Installment Agreement with the IRS. In order to qualify for this option, you must meet the following criteria:

  • You must be a qualifying taxpayer according to the IRS.
  • You owe $25,000 or less.
  • Under the terms of your Direct Debit Installment Agreement, you will pay the full amount owed within 60 months, or before the Collection Statute expires, whichever comes first.
  • You are in full compliance with all other tax filing and payment requirements.
  • You have made three consecutive direct debit payments.
  • You have not defaulted on your current Direct Debit Installment Agreement, nor have your defaulted on any prior Direct Debit Installment Agreement.

It is important to remember that a federal tax lien impacts all of your assets. For example, your house could be impacted, making it difficult for you to sell or obtain a loan. Fortunately, our experienced tax attorneys can help. We have offices in Oklahoma City, Tulsa, and Norman to better serve the entire region. Visit our client testimonials page today to learn how we have helped many clients find alternative solutions to their IRS tax problems.

Travis Watkins
Senior Tax Attorney
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