The IRS Declares Efforts to Reduce the Burden of Federal Tax Liens

For most people, their personal residence is their most important possession. When a tax debt owed to the IRS results in a federal tax lien, this can feel like a significant threat against your treasured asset. Tax liens hamper your ability to sell or refinance your property. This can prove to be a significant problem when you are already facing difficult financial times. Fortunately, the IRS has announced changes to its protocols which could provide relief to many taxpayers.

Four Changes That Will Lessen the Impact of Tax Liens

The IRS plans to help taxpayers who are dealing with tax liens while wrestling with a difficult economy by enacting the following changes:

  1. Significantly increasing the dollar threshold for when, in general, they will file a lien. This new dollar figure reflects inflationary changes that have taken place since the number was last revised by the IRS. Liens are automatically filed at a certain dollar value for taxpayers who have a past-due balance. While this change in dollar amount may not be permanent, the IRS has said that it intends to review the impact of the change in the lien threshold amount in approximately one year.
  2. Making fundamental and beneficial changes to the liens that it imposes against taxpayers when they enter into a Direct Debit Installment Agreement.
  3. Modifying procedures in order to make it easier for taxpayers to obtain a withdrawal of their tax lien. Under this new protocol, the lien will be withdrawn once full payment of the tax is made, provided that the taxpayer makes the request.
  4. Working on speeding up its processing of taxpayer requests relating to discharges of tax liens and mortgage restructuring in order to assist taxpayers in difficult economic times.

When you are facing an IRS tax problem, it is important to explore all of your options in order to minimize the negative impact of the problem on your personal finances. Fortunately, you do not have to be a tax expert in order to do so, because we are here to help. We encourage you to reach out by calling our toll free number today at (800) 721-7054.


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