Question 1

What is IRS tax resolution?

Accepted Answer

IRS tax resolution is the process of addressing unpaid federal tax debt through IRS-approved programs such as installment agreements, penalty abatement, lien release, or settlement options. Resolution depends on your financial situation, compliance history, and the type of IRS notice received.

Question 2

What is a Federal Tax Lien?

Accepted Answer

A Federal Tax Lien is the IRS’s legal claim against your property when you fail to pay a tax debt after the IRS has assessed the tax and sent a demand for payment. The lien generally attaches to real estate, personal property, and certain future assets until the debt is resolved or becomes legally unenforceable.

Question 3

How do I know if the IRS has filed a tax lien against me?

Accepted Answer

The IRS typically sends multiple notices before filing a lien, and may send a Notice of Federal Tax Lien (NFTL) filing notice when a lien is recorded. You may also discover a lien through a public records search or during a lender title search.

Question 4

What is the difference between an IRS tax lien and an IRS levy?

Accepted Answer

An IRS tax lien is a legal claim against your property to secure the government’s interest in a tax debt. An IRS levy is an actual collection action that may seize funds or property, such as bank account funds or wages, after required notices and appeal rights.

Question 5

Can an IRS tax lien be removed?

Accepted Answer

In some situations, a tax lien may be released after the tax debt is fully paid or otherwise satisfied, or if it becomes legally unenforceable. Depending on eligibility, the IRS may also approve lien withdrawal, subordination, or discharge for specific property.

Question 6

Does an IRS tax lien affect my credit?

Accepted Answer

Federal tax liens are public records and may impact lending decisions, financing opportunities, and asset sales. Even if a lien is not shown on certain consumer credit reports, lenders and title companies can still identify liens through public record and title searches.

Question 7

Can I sell or refinance property with an IRS tax lien?

Accepted Answer

Possibly. The IRS may approve a lien discharge or subordination in certain cases, including when a sale or refinance supports collection of the tax debt or protects the government’s interest. Approval depends on the facts, equity, and compliance status.

Question 8

What IRS tax resolution options are available?

Accepted Answer

Depending on your situation, options may include installment agreements, penalty abatement (when eligible), lien release or withdrawal (when eligible), Offer in Compromise (when eligible), or Currently Not Collectible status. Each option has specific IRS qualification and documentation requirements.

Question 9

Can I resolve IRS tax debt without paying the full amount?

Accepted Answer

Some taxpayers may qualify for reduced settlement options, such as an Offer in Compromise, based on income, assets, allowable expenses, and collection potential. Approval is not guaranteed and requires complete financial disclosure and compliance with filing requirements.

Question 10

How long does an IRS tax lien last?

Accepted Answer

An IRS tax lien generally remains in effect until the tax debt is paid in full or the IRS collection period expires. Certain actions, such as appeals, agreements, or bankruptcy, can affect timelines and should be evaluated based on the facts of the case.

Question 11

Can the IRS file a lien if I’m on a payment plan?

Accepted Answer

Yes. The IRS may file a tax lien even if you are on an installment agreement, particularly for larger balances. In some cases, certain streamlined agreements or specific facts may reduce the likelihood of lien filing, but it is not guaranteed.

Question 12

Who is authorized to represent me before the IRS?

Accepted Answer

Enrolled Agents, CPAs, and attorneys are authorized to represent taxpayers before the IRS. Enrolled Agents are federally licensed tax practitioners authorized to represent taxpayers for audits, collections, and appeals.

Question 13

How long does IRS tax resolution take?

Accepted Answer

Timelines vary based on the issue, IRS processing, compliance status, and the type of resolution requested. Some matters may be addressed in weeks, while others can take several months or longer.

Question 14

What happens if I ignore IRS notices?

Accepted Answer

Ignoring IRS notices may lead to enforced collection actions, including liens and levies, after required notices and appeal rights. Responding early can help preserve more resolution options.

Question 15

Is IRS tax resolution guaranteed?

Accepted Answer

No. A specific outcome cannot be guaranteed because IRS decisions depend on eligibility rules, documentation, and review processes. A legitimate professional can explain options and help you submit accurate, complete requests.

Question 16

How do I get started with IRS tax resolution?

Accepted Answer

Start by gathering your IRS notices and reviewing your filing compliance, balances, and financial information. A qualified tax professional can help determine which IRS resolution options may be available based on your situation.