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topdog3233
Posts: 1
Registered: ‎07-27-2010
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Tax Lien Question!!

I was on here before discussing my husband's tax lien...I found out yesterday that the lien was actually released June 28.It was sent to our CPA who has not contacted us about it to even let us know.I had to call the Clerk of Superior Court to find out the details of it.She was very nice and explained that it could take her office up to 3 months to report it being released to the CRAs.She even said our best bet would be to dispute it with Equifax(since we already have their monthly monitoring service).She would be more than happy to verify the release to them when they called.Since I explained the reason behind the lien to begin with to her she suggested I visit the IRS website and get Form 668 asking for a withdrawal of the tax lien,not just a release.I have found the form and filled it out but it asks for a letter stating the reason for the request.My question is does anyone have any suggestions on how to draft this letter and have it really work in a positive way?

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guiness56
Posts: 22,406
Registered: ‎01-17-2008
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Re: Tax Lien Question!!

Hi and welcome to the forums.

 

If it is not showing as paid/released you could dispute it.  Unless you are applying for something I would hesitate to do that.

 

I found this on the IRS web site:

 

By law, a filed notice of tax lien can be withdrawn if:

 

  • The notice was filed too soon or not according to IRS procedures,
  • You entered into an installment agreement to pay the debt on the notice of lien (unless the agreement provides otherwise),
  • Withdrawal will speed collecting the tax, or
  • Withdrawal would be in your best interest (as determined by the Taxpayer Advocate), and in the best interest of the government

It would be easy to show it is in your best interest to have it withdrawn, I don't know how it would be in theirs. 

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SDDave
Posts: 65
Registered: ‎03-30-2008
0

Re: Tax Lien Question!!

Keep in mind, there was no way your CPA was going to know unless they went checking at the courthouse on the lien status.  Tax professionals have no more ability to check on these things than their client, and even calling the lien unit at the IRS requires about an hour of redialing and waiting on hold.  As Guiness pointed out, the reason for withdrawal cannot prejudice the government.  A withdrawal usually is meant for situations where the lien should not have been filed in the first place, such as payment received in full before the lien being filed, and yes it happened to a client of mine.

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JGeuy
Posts: 37
Registered: ‎08-03-2010
0

Re: Tax Lien Question!!

I am doing this as well, since I have a installment agreement with them and I no longer own the property the lien is attached to. This is my letter to them:

Internal Revenue Service

CCP - Lien Unit

P.O. Box 145595

Stop 8420G Team 207

Cincinnati, Ohio 45250-5595

Via fax: 859-669-4954

1-800-913-6050

September 4, 2010

 

I am writing to ask for a withdrawal  of a federal tax lien.  My understanding is that tax liens can be released or withdrawn if:

  • The notice was filed too soon or not according to IRS procedures,
  • You entered into an installment agreement to pay the debt on the notice of lien (unless the agreement provides otherwise),
  • Withdrawal will speed collecting the tax, or
  • Withdrawal would be in your best interest (as determined by the Taxpayer Advocate), and in the best interest of the government.

I have an IRS installment agreement, and have been making payments as agreed. The installment agreement does not indicate that the withdrawal is not an option. Withdrawal would be beneficial, as this would allow me to access other credit to pay the tax off faster and at a lower interest rate.  This would speed the collection of the tax, which is in the best interest of the government as well as myself. 

The withdrawal would be in my best interest as I am in the market to purchase a home.  The presence of the lien impedes my ability to qualify for the loan and decreases my ability to qualify for a competitive rate.  This lien was also attached to real property, which I have not been possession of since July 2007.  It serves no purpose for the government to attach a lien to property I do not own and which cannot be seized if the debt is not paid.  This is not in the best interest of the government.

 This lien potentially further impedes the process of paying not just the amount owed, but increases associated interest and penalties.  This reason for withdrawal is also in the best interest of the government as well as myself.  Since the lien was caused by an extended period of unemployment several years ago, and the employment situation has been resolved for several years now, the release also removes any impediment that its presence on my credit reports may cause, with regard to future employment.

I have attached the copy of the installment agreement for your reference.  You may also reference my previous tax records, which also show a consistent history of several years of tax refund offsets toward the payment of this lien.

Please note that I am not in any way disputing this debt, though I do believe that the amount of $14781.50 is incorrect, as the total per the installment agreement is a total of $4198.01.  If it proves to be impossible to withdraw the lien, I would ask that the balance amount be  updated, at the very minimum, to the correct amount.

Given that three of the four above criteria have been met (I do not have any question that IRS followed its procedures) and the withdrawal is in the best interests of the government as well as myself, I respectfully request that the lien be withdrawn and letters sent to the following:

 

 

I have also filed an Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (as based on Internal Revenue Code Section 6323(j)).

 

Thank you for your time and consideration of my request.

 

 

 

 



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cascade159
Posts: 72
Registered: ‎11-20-2009
0

Re: Tax Lien Question!!

This is a great resource as I am dealing with a similar issue. Please keep us posted on your progress.

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