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IRS Makes Change In How They Handle Tax Liens 7/27/2011

IRS Makes Change In How They Handle Tax Liens In Strapped Economy. 

The IRS, in an attempt to help financially strapped taxpayers get a fresh start, will be implementing a few new regulations.  The IRS is planning on filing fewer tax liens and makes it easier to get tax liens withdrawn.  This will in turn clear taxpayers’ credit records of the bad mark of a tax lien on their credit reports.  This marks the recent effort by the IRS to go easier on taxpayers in this very difficult economy.

The IRS decided to make this change when the number of tax liens skyrocketed to 1.1 million in 2009 up 550% from 1999.  Under the new regulations, the IRS will only file a tax lien if the amount of taxes owed exceeds $10,000 (it was $5,000 under the previous regulation).  Another regulation states that if you owe $25,000 or less, the IRS will issue a tax lien withdrawal once the taxes have been paid up or you enter a direct debit installment agreement with the IRS.  This withdrawal would effectively wipe out the incidence of the tax lien from the taxpayers’ credit records.  This means it would be as if the lien was never issued.  In the past, a taxpayer had to apply to get the tax lien withdrawn and the IRS rarely approved that request. Previously, the IRS would typically grant a tax lien release which would not erase the negative information from the taxpayer’s credit report and would continue to be marked as an unpaid tax bill and would show as if the taxpayer reneged on his tax obligations.

With the new IRS regulations in place, you will have your tax lien withdrawn once you change from a standard installment plan to a direct debt one.  After an initial probation period of making debt payments, the IRS will withdraw the lien.  Once this tax lien has been withdrawn, all the major credit bureaus will delete the liens from their records.  This can be crucial to your credit score and records when applying for future credit.

When dealing with the IRS, it is always a good idea to contact a tax professional or tax attorney/tax lawyer to help you with the process. 

Contact a tax attorney or tax lawyer at Tiller Law today for your free consultation. Serving Miami, Fort Lauderdale, Hollywood, Boca Raton, West Palm Beach, Palm Beach Gardens, Jupiter, Hobe Sound, Stuart, Port St. Lucie, St. Petersburg and Tampa and throughout the State of Florida.

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