Don’t take “no” for an answer when negotiating a lien withdrawal. If you can’t get the lien withdrawn on the first try, it’s far from over. You have the following tried and tested methods that frequently force the IRS to reverse initial decision:
- Taxpayer Assistance Order. The IRS is forced to resolve a tax lien when a Taxpayer Assistance Order is issued. Code §7811(a) provides that the IRS not take any action, or refrain from taking action, that will result in a significant hardship to the taxpayer.
- Collection Due Process Appeal or Equivalent Hearing. This is a game changer. A citizen has an absolute right to appeal IRS decisions, including when the IRS files a tax lien in error or where lien resolution is not resolved with a Revenue Officer.
- United States Tax Court. This Federal Court provides for checks and balances, and prevents IRS authority to be unbridled or without due process review, including in tax lien matters. Use a lawyer licensed in U.S. Tax Court. An “Enrolled Agent” or CPA cannot represent you in U.S. Tax Court.
- Quiet Title Action. A little known federal statute allows a citizen to sue the government, including the IRS, and quiet title to real estate or personal property on which the United States claims a mortgage or other lien. 28 USC §2410. The suit is brought in Federal District Court to settle the question of property ownership.
- Get the Lien Released Instead of Withdrawn. If you can’t get the lien withdrawn, the next best thing is to get it released using a variety of methods such as post-bankruptcy negotiation and lien expiration and other methods.
Tax Solutions May Not Be Easy to Obtain, yet they Can be Obtained. If Tax problem solving requires both “in the box” and “outside the box” thinking. It requires legal analysis and experience. A favorable tax result is not about what is easy to advertise and fits into a radio sound bite.
Call us for a free tax problem solving analysis, and feel free to get a complimentary copy of the Faith Firm book, How to Get Tax Forgiveness.