As you may know, sometimes having unpaid taxes can result in having a federal, or state, tax lien on your home or other property. If you want to sell your real estate to get out of tax debt, you will need to resolve the lien first.
I hope this email might help someone you know. There is more info on our Lien Removal page.
How to Remove an IRS Tax Lien
The best way to remove an IRS tax lien is by getting it “Withdrawn”. A withdrawn lien is as if the lien never existed. You would not be further bound by it, and it would no longer affect your real estate. These FAQ videos can tell you more.
A federal lien can get withdrawn for four reasons:
- It would help the IRS facilitate tax collection
- It was filed too early, or with procedure errors
- It would be in the “best interest” of both you and the IRS.
- You entered into an installment agreement, of which does not authorize a tax lien
”Release”, or “Partial Release”, or “Discharge” are other ways to handle your lien. If you expect that the IRS or state might issue a Notice of Lien against you (and on your home), you can request discharge or other treatment to allow you to sell your home. You could even use money from the sale to pay off your tax debts, if necessary.
This video gives a great explanation of the Withdraw application process.
How to Remove a State Tax Lien
If you receive a notice that you owe taxes, the easiest thing to do is pay them. But usually, just paying the tax lien is not and easy option. Fortunately, some of the available options for handling liens from IRS taxes can also apply to liens from many states.
And remember, state tax liens are different from property tax liens. Property taxes are only secured by a lien on the real estate, and usually do not follow the owner. For example, if you fail to make property tax payments in Illinois and most other states, your local county will place a lien on your property.
If you believe that there are tax exemptions you qualify for that have not been applied, you can file certificates of error. The act of filing should temporarily remove your home from the tax sale process as the county takes time to review your claim.
Remember, there is more info on our Lien Removal page.