Solutions through IRS Tax Relief and third party guarantee

How to Remove IRS Tax Liens
The IRS possesses wide powers as far as tax collection is concerned. When a taxpayer defaults on the tax redemption, filing for a lien is the first activity they carry out to recover the dues in the form of IRS tax debt. As per the law, a lien attaches to all the properties and possession owned by the taxpayer, once a federal tax notice is “served”.

This indicates that the IRS gets a legal right over the assets and bank accounts owned by the taxpayer to recover IRS debt. To make the lien more effective, it’s required to be filed in the “public records” system, which is usually the local county office where individuals file their tax returns. The IRS initiates this legal instrument if it feels the individual is neglecting the payment of outstanding tax dues.

IRS tax lien implications
The filing of a lien can have an adverse implication for the taxpayer. Once the lien is served, it imposes an encumbrance on the assets owned by the tax debtor. Due to the imposition, the credit rating of the individual decreases considerably. Normally, credits limits are issued against the security offered by the assets owned by the debtor.

The filing of the tax lien by the IRS has a strong effect of advertising to the world that a particular person is a tax defaulter, and a “wrong one”. No creditor likes to provide credit facilities to a person bogged down with “bad reputation”, since liens are associated with

Hugh recoverable liabilities which proceed credit recovery by the lenders if the borrower exhibits delinquency. Getting fresh loans becomes almost impossible for such a person.

Tax lien solution
So the basic question is if a tax lien is in fact imposed, what’s the solution? The recommended thing to do is to clear the tax debt as soon as possible, and eradicate the imposed lien. This can only be done by redeeming the IRS taxes. The IRS is obliged to “release” the lien and make it “ineffective” within thirty working days after the tax dues are paid in full and all outstanding penalty is redeemed.

Wage garnishment
If the debtor cannot pay the entire due amount in one lump sum, the taxpayer holds the right to make a request for making the payments in installments. Once a monthly installment schedule is drafted, it becomes possible to request an immediate release of the lien by redeeming the IRS debt.

However, the IRS may entertain this request if they “feel” it’s OK to remove the protection, and the tax debtor is certain to redeem the taxes. However, there’s one more option available in case the IRS decides not to release the lien.

It’s possible to undergo wage garnishment and pay the outstanding tax through payroll deduction from wages, or electronic clearance from debtor’s bank account. When consent is given for such automatic deduction, the IRS starts recovering the taxes from the monthly pay.

Third party guarantee
Another option is to provide a certain guarantee offered by a third party, in which case the guarantor “promises” to redeem the taxes in the event the tax debtor fails to make the payments.

This option can also be in the form of a “bank guarantee”. The IRS generally releases the lien if they are convinced about the regularity in the monthly payments leading to a total pay off over time by the IRS tax help provided by the guarantor.

IRS tax relief
Professional lending companies offer special credit facilities to redeem the outstanding IRS dues by offering IRS help. These facilities are generally offered through IRS tax relief or IRS tax settlement programs.

As per the process, an expert in taxation working for the company represents the tax defaulter, and negotiates on his or her behalf to work out an arrangement and seek waiver to reduce some of the outstanding IRS dues. The remaining tax amount is paid off on behalf of the individual to the IRS, and subsequently the debtor pays reduced monthly installments to the credit company to redeem the dues owed to that particular company. In such cases the IRS receives its money so the lien gets released automatically.

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Tax law provides many solutions for resolving tax debt. But if you were to contact the IRS directly, they would only alert you to one solution, and that’s paying the tax debt in full. Here are five popular IRS tax relief solutions you should know about to be more informed.

IRS Tax Settlement

It is possible to settle your IRS tax debt. But there are some pitfalls you need to know.

First, take a good look at your assets and finances. If you have assets that can be sold to satisfy your tax debt or enough money in your bank account to pay the tax debt in full, you will not be approved for an Offer in Compromise (IRS Tax Settlement).

Do not waste the money or effort if either scenario applies to your financial situation.

After you’ve determined that you have a chance at settling your IRS debt, you will need to fill out Form 656 “Offer in Compromise.” Make sure you fill out every single space, leave nothing out.

Make sure to sign the paperwork, as this is a common mistake people make when they submit their own forms. You do not want your tax settlement offer rejected due to simple mistakes because you will have to submit 20% of your offer along with the forms. If your offer is rejected, this money is non-refundable.

You must also keep some common IRS tax settlement roadblocks in mind before you submit your offer. First, are you up to date with filing your taxes? If you are not, your offer will be rejected.

The second issue is bankruptcy. If the IRS finds out that you have filed for bankruptcy at or around the same time you submitted your Offer in Compromise, your tax settlement offer will be denied.

Finally, you need to remember that an IRS tax lien will not be removed when you submit your offer. Tax liens, with few exceptions, are only released when the tax debt is completely satisfied. The tax lien will remain until after your tax debt is paid off.

Getting an IRS Tax Levy Released

The IRS Tax Levy is a fierce weapon the IRS uses to collect on tax debt. If you do not reply to the IRS’s correspondence requesting payment, chances are high the IRS will use a tax lien or a tax levy on you. However, there are a couple of IRS tax relief solutions to try to get your IRS wage or bank levy stopped.

IRS Bank Levy

The IRS will send you a notice stating they intend to levy your bank account. You bank account is now frozen. After the notice you have only 21 days before the IRS seizes your money for good. Working fast is imperative.

If you set up an installment agreement or make any kind of good faith payment before the 21 days are up, you can save the money that is in your bank account, and avoid the impact of the IRS tax levy.

· IRS Wage Levy

If you ignore your tax debt long enough, the IRS can implement a wage levy against you. This means the IRS will remove a set amount from your paycheck until your tax debt is paid in full. It is not unusual for the IRS to take up to 75% of your paycheck, leaving you a minimal amount to meet your own monthly financial obligations.

You are certainly in need of IRS tax relief if you are the victim of the IRS wage garnishment. The IRS wage levy can also be released or “lifted” but seeking expert IRS tax help may be prudent as each pay period that passes creates more financial damage.

Installment Agreement

You can make monthly payments on your IRS tax debt. The IRS will calculate your income and assets when you file Form 9456. After the IRS determines you qualify, they will set the amount you can pay each month to pay off your tax debt. When you are approved, you must make sure not to default on your monthly payments.

Your plan will be canceled and you will not qualify for another installment agreement for six months to one year.

The monthly installment agreement is the most common IRS tax relief solution for payment of back tax debts. As you can see, the IRS provides many solutions for taking care of common tax problems.

You have to act fast and make sure you respond to any notices you receive from the IRS as soon as possible. The IRS will not and can not be ignored.

When Negotiations Fail

Most people who call the IRS directly have trouble communicating with the IRS. The IRS is trained to collect money no matter what, so having them release your IRS tax levy is nearly impossible for the ordinary taxpayer.

When levies are being implemented, time is limited. It’s a good idea to hire a tax care professional that can negotiate with the IRS for you, on your behalf. That will improve your chances at an IRS tax relief solution that is workable for you!

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