Whether by honest mistake or due to issues with affordability, your failure to pay your tax debts to the IRS may result in a tax lien on your Oklahoma City home. In order to get rid of a tax lien on your property, you can simply pay your tax debt in full. Once the debt is paid, the IRS will release the lien within 30 days after receipt of payment. Unfortunately, paying the tax debt in full may not be affordable for you. Other options may need to be explored in order to minimize the damaging impact of a tax lien on your home.
How to Get Rid of a Tax Lien on Your Home
When you are ready to start considering ways to remove the lien from your home, consult with a knowledgeable attorney for guidance. There are generally four main ways to remove the lien, as outlined below:
Obtain a Discharge to Remove the Lien From the Real Estate
In order to qualify for a discharge of property, several IRS criteria must be met. If you do qualify, however, the lien can be removed completely.
Obtain a Subordination
While a subordination does not actually remove the lien from you property, it does allow other creditors to move ahead of the IRS in terms of priority. Obtaining a subordination from the IRS may make it easier for you to obtain a loan or a mortgage for the property.
Obtain a Withdrawal
A withdrawal removes the public Notice of Federal Tax Lien from the property. It also serves as reassurance to you and to third parties that the IRS is not competing with other creditors for your real estate. It is important to note that a withdrawal does not erase the debt that is owed to the IRS.
In addition, the Internal Revenue Service Commissioner’s 2011 Fresh Start Initiative resulted in two additional options for a withdrawal. The first option allows for the withdrawal of your Notice of Federal Tax Lien after the lien’s release. The second option allows for the withdrawal of your Notice of Federal Tax Lien if you enter into or convert an existing installment agreement to a Direct Debit installment agreement. For either option, specific criteria must be met in order to be eligible.
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