Federal Tax LIEN

[Anonymous]

Thank you for the input.

One question i have is how long after getting the notice of the lien did it hit your credit report?

I have been surfing the IRS web site and am hopeing i might have some stuff that will help me

I was in iraq on travel orders as a contractor to the Dept of Army. and when i got back the other week they filed a lien the day after i go home..

i have found this info

However, in many other situations you may be able to convince the IRS that withdrawing the lien would facilitate collection by enhancing your client's ability to retain his job, operate his business, borrow money for the payment of taxes, etc. The Manual sets forth a list of questions for the Revenue Officer to consider in deciding whether the requested withdrawal would in fact "facilitate" collection of the tax liability or would be in the best interests of the taxpayer and the government:

What will be the effect of withdrawing the notice of lien? Are there claims currently subordinate to the Federal Tax Lien which will become superior?

Will the Service receive a lump sum amount against the liability?

What is the likelihood that the taxpayer will dispose of the property if the notice is withdrawn? Is there sufficient equity for this to be a concern?

Is there any possibility that a bankruptcy may be filed if the withdrawal is not obtained? Will tax collection be undermined if the notice is withdrawn and the taxpayer files bankruptcy?

Are there other tools available, e.g. subordination, that will alleviate the taxpayer's problem without eliminating the protection offered by the filed notice of lien.

Will withdrawal enhance the taxpayer's ability to obtain additional credit; and how will additional credit affect the taxpayer's ability to pay the tax?

Is the NFTL the result of a defaulted installment agreement?

Is the taxpayer pyramiding liabilities?

Often your client will be more concerned with the filing of public notice of the lien than with the lien itself. And in those situations, if the previously discussed remedies are not available (release, discharge, subordination or nonattachment), you may wish to argue that the notice of federal tax lien should be withdrawn. By reviewing the questions the Manual directs the Revenue Officer to consider, you can better frame and support your arguments.

BUT I NEED TO KNOW HOW LONG IT TAKES FOR THIS TO HIT THE CR....

THANKS FOR YOUR HELP

[Anonymous]

Also does it go on all three CR?

and

Who reports this to the CRA?

[nosxih]

I don't know how long it takes to get placed on your credit report but I don't think it takes that long. If a withdrawal is granted it will be removed if it is already showing on your report.

All three CRAs get a copy of the Fed Tax Lien. The IRS submit the lien to the courthouse of your county and that is who reports it. There is not a collection agency.

The form for the request to withdrawal has the 4 reasons why a withdrawal would be granted. You must choose the most applicable reason. DL the form from the IRS in PDF format. There are instructions on the form.

Also, you can call the tax advocate number and they will help fill it out.

This is only information based on my experience and may be different in your case.

[tryingtogetitrightnow]

What exactly did you get? Did they send you a letter that was an "Intent to Levy" your assets?

[nosxih]

I will have to dig out the paperwork because it has been 5 years now. I got a levy against my name (I guess that is how you put it) I did not get wages garnished or anything drastic like that.
I amended my taxes for the 3 years that the lien was for and ended up not having to pay anything. (Original bill was for 20K)

But, I was not watching my credit report back then and it was years before I ever even saw it on my reports. So I cannot tell you exactly when it hit.

I can tell you this, I have been denied once and have since resubmitted a withdrawal request and will continue to do so until it is removed, I die or 10 years pass.

[Anonymous]

I got a notice of Federal Tax Lien..

If i get a withdrawal I don't think my employer will be able to locate this and i should be able to pay off all dues with ion 60 days with 40% to 50% down.

Any input on how i should talk to these people would be great.

And about the advocate office. i just found the link for them.

There office is only 50 miles from the house. Might be worth the drive here in a couple of days

Or

Do you think i should start at the Advocated Office before the collector?

I really think i fit the reason for withdrawal as I posted above

[tryingtogetitrightnow]

I was asking this to Chuck. I'm no expert, but there is a Notice of Intent to Levy, Notice of Levy, then the actual filing of the lien, I think.

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@tryingtogetitrightnow wrote:
What exactly did you get? Did they send you a letter that was an "Intent to Levy" your assets?

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[nosxih]

I cannot say what the best route to take is. I do know that I wish now that I would have done it different. I think talking to the TA on the phone may be a good first step.


I would research the withdrawal form because that is how to get the lien removed. If you pay it off like I did before getting a withdrawal you will have a difficult time getting it removed.

If you pay state taxes I would also contact that office to see if those taxes were affected.

[Anonymous]

My CPA thought so also as it might make it poersonal and find a warm spot in that person heart.

I hope i can talk good tommorow and i better limit my caffine before the call. LOL

Here is the actually IRS Law

5.17.2.8.7  (12-14-2007)
Withdrawal of Notice of Federal Tax Lien

1. There is an important distinction between "releasing" a federal tax lien and "withdrawing" a filed notice of that lien. The release of a federal tax lien extinguishes not only the notice of lien , but also the underlying assessment lien. IRC § 6325(f). Not all releases occur after the liability has been satisfied. For example, unless timely refiled, NFTLs filed since December 1982 will self-release. See IRM 5.17.2.8.3, above. The release itself does not extinguish the underlying liability.

2. Sometimes, however, circumstances arise where it is in the best interest of the government to withdraw the NFTL. The Service has authority to "withdraw" a notice of federal tax lien, in certain circumstances. IRC § 6323(j). The withdrawal of the NFTL only withdraws public notice of the lien; it does not extinguish the underlying liability, nor does it release the underlying federal tax lien.

3. The Service may withdraw a notice of federal tax lien if the appropriate official determines that one of the following four conditions is met:

   1. The Service’s filing of the NFTL was premature or otherwise not in accordance with administrative procedures.

   2. The taxpayer has entered into an installment agreement to satisfy the tax liability, unless the agreement provides otherwise.

   3. The withdrawal of the NFTL will facilitate collection of the tax liability underlying the NFTL.

   4. The withdrawal of the NFTL would be in the best interest of the taxpayer, as determined by the National Taxpayer Advocate, and in the best interest of the United States, as determined by the appropriate official.

      Note:

      The Service needs the consent of the taxpayer or the NTA to withdraw a notice of federal tax lien as in the best interests of the United States. A withdrawal for one of the other reasons does not require consent. IRC § 6323(j)(1).

4. The Service must file its notice of withdrawal of the NFTL at the same office as the withdrawn notice, and must provide a copy of the withdrawal to the taxpayer. IRC § 6323(j)(1). In addition, if requested in writing by the taxpayer, the Service must make reasonable efforts to give notice of withdrawal of the NFTL to creditors, credit reporting agencies, and financial institutions specified by the taxpayer. IRC § 6323(j)(2).

[rebuilding]

wonder what would happen if you just filled out this form and mailed it off???  thinking about trying it myself... 

http://www.irs.gov/pub/irs-pdf/f12277.pdf