Bob Jablonsky & Associates Blog

6 Options When The IRS Threatens a Tax Lien

by | Jun 21, 2021

When a Taxpayer owes the IRS, one of IRS’s most powerful tools is the Notice of Federal Tax Lien (NFTL).  In this article, we’ll discuss some actions you as a taxpayer can take if the IRS is threatening you with an NFTL.

Six Options for a Taxpayer under Threat of an IRS Lien

Here are a six options to consider when under threat of an IRS lien:

  1. The IRS will not file an NFTL if the balance is less than $10,000.  If you are above that level but can pay the balance down to $10,000, the IRS generally will not file a lien.
  2. If your assessed balance is below $50,000, you can set up a direct debit installment agreement (DDIA) and request that the IRS not file a lien. This is known as a Streamlined Payment Plan.
  3. If over $50,000, there is now an option available for amounts owed up to $250,000 if within the IRS ACS unit ($100,000 if with a Revenue officer). The NFTL must be considered under this payment plan but is not required to be filed.  A big benefit is that the taxpayer is not required to send their detailed financial information to the IRS.
  4. If none of those work, if the filing of an NFTL will harm the ability of the IRS to collect the debt or if will harm the Taxpayers ability to earn a living, the IRS may refrain from filing a lien.
  5. A CAP hearing will get you before the IRS appeals and can help if the IRS has not followed procedures or filing the lien is unfair. The CAP appeal is available once the IRS sends Form CP504 to the taxpayer.   
  6. If you qualify to settle for less than the full amount of the debt, an Offer in Compromise might be a solution for you.   

Do you Need Help?

If you are under a threat of an IRS lien or have any other IRS issues and need professional help in resolving your problem, please contact me at (972) 821-1991 or at [email protected]

Bob Jablonsky is the founder of Bob Jablonsky & Associates. He has spent his career helping taxpayers resolve tax issues and get back on track with the IRS. In addition to tax resolution his firm also prepares hundreds of tax returns every year for both individuals and small to mid-sized businesses.

Bob is an IRS Enrolled Agent (EA), which is an elite credential issued by the Internal Revenue Service to professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation, and representation matters. An Enrolled Agent license is the highest credential awarded by the IRS and is recognized across all 50 states. Additionally he is a CMA, or Certified Management Accountant, a designation for financial controllers and CFOs (Chief Financial Officers), as well as an Advanced Certified Quickbooks Pro Advisor.

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