IRS and State Tax Lien and Levy Release/Removal

Getting a tax lien or levy released is a negotiation process. The good news is in many cases liens and levies can be temporary or released after being accepted into a payment program.

Tax Lien and Tax Levy Release

We’ve covered what a tax lien and tax levy are on a previous page (you can also see the first FAQ below). Basically, a lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt. 

Take the threat of a lien or levy seriously. Once you are under a lien or levy, it takes an experienced tax relief professional to deal with the IRS and negotiate on your behalf for the best possible outcome. Getting out from under a lien or levy typically means the negotiation of acceptance into a payment program to pay off your tax debt. Getting to that point takes the experience of a tax resolution professional to deal with taxing authorities and handle the negotiation process.  

That’s where we come in.

Strategic Tax Resolution are your local tax resolution experts. With convenient offices to better serve you, we work on your behalf to get you the best possible outcome. Don’t pay a penny more than you should!

Frequently Asked Questions About Tax Liens and Levies

There is often confusion between the difference between a tax lien and a tax levy. A tax lien is a legal claim that can be made against your property in order to secure payment in the future on the money you owe.

A tax levy enables the IRS or State to physically seize your property in order to satisfy your debt.

Prior to a tax lien being placed on your property, the IRS must first asses a taxpayer with what is called a liability and demand payment. If the taxpayer does not make a payment within 10 days of the demand, the IRS has the ability to send out a notice of a federal tax lien. In order to notify you of this tax lien a letter will be sent to you in the mail, and they may also try to contact you by phone.

Once the IRS has filed a tax lien against your property, the tax lien becomes public and the IRS will have an official claim to your property. This makes it difficult to borrow money in the future. While a tax lien may not show up on your personal credit report, it can show up on other consumer and business reports.

A federal tax lien covers all property a taxpayer owns plus any future property they obtain.

Yes, a federal tax lien can be released. In order for the tax lien to be released a person much get back into compliance with their taxes in order for the lien to be released. You can either pay in full or enter into an offer in compromise.

The most common reason why the IRS will file a tax lein is because of unpaid income taxes. A tax lien will generally be filed if a person owes more than $10,000 to the IRS.

The fastest way to stop a tax levy is to pay back your debt in full. Make sure to contact a licensed tax professional first though to understand what options are available to you, if you cannot pay the amount owed in full.

Some assets are deemed exempt from a tax levy these items include:

  • Unemployment benefits
  • Income from court-ordered child support payments
  • Minimum exemption for salaries/income
  • Tools necessary for profession, business, or trade
  • Worker’s compensation
  • Assistance under the Job Training Partnership Act
  • Certain pension and annuity payments
  • Principal residence
  • Household items and furniture
  • Certain disability payments connected to service

You have a legal right to appeal a tax levy enforced upon you, but you must be fast! The IRS can start seizing your assets within 30 days of sending the notice. You can also file an appeal that will put your case on hold until the appeal process is complete.

To schedule a consultation with Strategic Tax Resolution please call our main office line (888) 339-4914 or visit our Contact Us page.