Tax Debt Solutions Blog

Tax Relief: Liens and Levies – The Basics

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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• Collection of taxes is aided by the lien notice being withdrawn
• It is to the advantage of the government and the taxpayer if the lien notice is withdrawn

If a notice of tax lien is withdrawn it gives up lien priority by the IRS at the time of filing.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