A tax lien can put a significant damper on your financial outlook, not to mention any plans to sell the property with a lien on it. In some cases, the IRS or Washington Department of Revenue will even place a lien on accounts receivable or other accounts, essentially freezing vital assets you need to run your business or household.
Tax liens can be challenging to remove, in many instances, until the balance owed is paid in full. You could always wait for the lien to expire, but that can take a decade or longer in most instances.
Instant Tax Solutions can work with you to find the optimal solution for removing your pending or existing lien. Our federal & state tax lien removal service has over a decade of experience assisting individuals and businesses with getting full access to their property.
We work closely with you to fully understand your tax situation, and then we explore every available option for removing your lien and reducing the pressures you face in connection with back taxes.
Find out how we can help you gain relief during a free, confidential case and accounting review with our seasoned tax experts. Call (888) 886-5526 or contact us online to schedule your free appointment today.
Spokane Federal & State Tax Lien Removal Service
A tax lien is, essentially, a claim preventing any sale or transfer of a property that the lien has been placed on. It is otherwise not intended to affect the use of the filer’s property, although that certainly does not apply when the lien is on a cash-based asset like a business’s accounts receivable.
Simply put, a lien says “dibs” on behalf of the IRS or Washington DOR any time the asset is to be converted into liquid cash and distributed. As one might imagine, a lien can put a severe damper on how the filer intends to use their property.
Often, those facing past-due tax troubles will want to sell the asset to free up cash or to otherwise improve their financial situation. Buyers who see there is a lien on the property may balk at the sale — or, otherwise, try to take advantage by offering a less-than-fair price.
On top of all this, there is the matter of a tax lien looking like a black mark, both on your credit and on the history of the asset.
While policies have been changed to where a tax lien is not supposed to affect certain aspects of your credit rating, it almost inevitably can. Further, having your options for sale or use of the asset limited by a lien can constrain your ability to make the optimal financial move for your future.
Instant Tax Solutions understands the troubles a tax lien can cause. When you work with us, you gain an ally in your fight against the IRS and Washington DOR to have the lien removed and to pay down the debt owed as much as possible.
Our clients can rest easy knowing that we are there to inform them of their best available options and our ability to represent them in negotiations and discussions with the IRS. When you are ready to explore your options for tax lien relief, reach out to our experienced tax professionals to find out how we can help get you back on the path toward a brighter financial future.
What Are My Options for Securing a State or Federal Tax Lien Removal?
Unlike a tax levy, a lien is considered to not place nearly as much of a burden on the filer’s financial situation. Because of this premise, the IRS and state revenue departments are not as keen to remove them simply because the property owner alleges a hardship.
Often, the best solution to having a tax lien removed is to pay the attached debt in full or to work out an agreement to pay the majority of the debt, whereupon the IRS may preemptively release the lien from the property in question. That said, filers do have other potential options for mitigating the effects of a tax lien, which are outlined below.
Discharge of Property
In some cases, the IRS is willing to grant a discharge of a specific piece of property from a lien. This form of relief is most often done in connection with the sale, refinance, or transfer of the asset.
The IRS is likely to place specific terms on the discharge, like a specific amount of proceeds from the sale going directly to the payment of a tax debt. Working with Spokane IRS tax relief attorneys can allow you to examine your options for a tax lien property discharge so that you and the IRS can come to a mutually beneficial agreement with a high chance of going through as planned.
Subordination
When a lien is subordinated, it effectively holds the status of the lien, often while a specific financial event like an appraisal or loan underwriting takes place. Because a lien can potentially affect your ability to use the property fully as intended — as well as, in some cases, affecting your appearance of creditworthiness — the IRS is sometimes willing to effectively take a “back seat” while these processes take place.
Once the subordination period has ended, the lien comes back into full effect until it is released through some other means.
Withdrawal
A withdrawal of a tax lien removes public notice of the lien, making it appear as if there is no lien from the perspective of other creditors who may have an interest in your property. The recipient of a lien withdrawal does not have their tax obligations forgiven, however, and continued non-payment can result in the full reinstatement of the lien or a seizure of the property through a tax levy.
The IRS is also willing to withdraw liens whenever the filer has entered into a direct debit agreement with them and follows the terms of the agreement until at least three consecutive payments are made.
Release of the Lien Following a Payment Plan or Reduction of Taxes Owed
In some cases, a lien can be released prior to the full payment of the assessed tax in question. This can occur when the tax debt is paid down to a value below $25,000 or when the size of the debt is smaller than the estimated value of the property affected by the lien.
The IRS may also be willing not to put a lien in place when your debt is less than $50,000, and you have entered into a direct debit installment agreement. However, this agreement must be made before the effective date of the lien.
Requesting an Adjustment or Filing an Amended Return
It may be possible that the amount the IRS or Washington DOR says you owe is inaccurate.
Sometimes, the assessment was performed erroneously or with incomplete information. In these cases, you can dispute the amount owed. It is best to do this before the lien is applied, however.
You can also file an amended tax return up to three years from the initial due date of the filed return. Your new, amended return may be able to include deductions, credits, or adjustments to the amount of income you declared.
Rest assured that Instant Tax Solutions will look deeply into your recent finances to find each and every opportunity to chip away at the amount you owe while making your tax records as accurate as possible.
Understanding a State Tax Lien vs. Federal Tax Lien
Every state has different rules regarding how they implement tax liens and when they are willing to release them.
Unlike the federal government, the Washington State government offers much more limited options for having a lien withdrawn or released. In fact, the state will routinely place a lien upon property after the filer has missed their tax due date and enters into a partial payment agreement with the state.
In other words, when you start making installments, you can expect that a lien will be put on certain properties as part of your payment arrangements.
Further, Washington state laws require the state to seize and sell property through tax foreclosure when the property owner is three or more years delinquent. If you are currently unable to pay the Washington DOR in full and are worried about a lien’s effects on your properties or overall financial portfolio, reach out to Instant Tax Solutions to see if you have options for relief.
Get Federal & State Tax Lien Removal Help in Spokane
From working with the government to finding any forms of relief available to finding ways to make your current unpaid tax debt more manageable, Instant Tax Solutions aims to cover all of your bases to get you towards the optimal financial future. Not only that, but we can help you develop a plan to pay down your debt and prepare for any future filings, giving you the financial freedom to seize more opportunities that could come your way.
When you are ready to stop worrying about your tax troubles and start down the path toward financial freedom, we are ready to help. Schedule a free, no-obligation appointment today when you call us at (888) 886-5526 or contact us online.
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