A call for tax relief must be founded on one of three points:
- Tax liability was fulfilled prior to filing of the lien
- Evaluation of a tax liability didn’t honor the Notice of Deficiency Procedure or Code of Bankruptcy
- Termination of the time for bringing in the liability before filing of the lien
Prior to a complete payment the IRS is allowed to remove a tax lien due to the following:
- Either the lien notice was too early or not in accordance with the admin process
- In order to fulfill the tax liability the taxpayer enters into a contract
- Collection of taxes is aided by the lien notice being withdrawn
- It is to the advantage of the government and the taxpayer if the lien notice is withdrawn
If a notice of tax lien is withdrawn it gives up lien priority by the IRS at the time of filing. It does not influence the fundamental tax lien.
A levy must be released by the IRS when:
- Due to a time lapse primary tax liability is fulfilled and is unenforceable
- Tax levy release aids the gathering of tax debt as decided by the IRS
- The carrying out of an acceptable installment payment agreement by the taxpayer
- Economic hardship is the result of the levy as decided by the IRS
- The tax liability is more than fair market value of property and limited levy release is not an obstacle in collection of tax
The taxpayer has the right to ask the IRS to sell the property that is levied. Under certain circumstances levied property can be restored by the IRS. This is done as if the property was erroneously levied on but no interest is restored to the taxpayer. In the case of negligence on the part of the IRS in not releasing a lien regarding property after being notified in writing, the taxpayer may be compensated.
