Taxpayers who come into our Richardson, TX tax office with IRS Debt often have IRS Liens that are a major headache in their lives or are under threat of a lien which concerns them. One of our major goals in working with taxpayer’s with IRS debt includes preventing an IRS tax lien from being placed on their assets or removing an IRS Lien that exists. Last week, we gave an overview of the IRS Tax Lien. Today, we will discuss some alternatives to prevent an IRS Notice of Federal Tax Lien (NFTL).
How Do You Know if You Have a Tax Lien?
Often, when taxpayers come into our office, they are unsure if they have had a NFTL filed against them. Sometimes they know and can show me the form 668 “Notice of Federal Tax Lien”, other times they are unsure or unable to confirm it for me. Before I do any work, I typically either call the IRS to confirm that the NFTL has been filed or I pull the taxpayer’s tax transcripts.
If you have not had a NFTL Filed (Yet), How can you prevent having one filed?
- Paying the Tax Debt in full will prevent an NFTL from being filed. Unfortunately, it’s not an option for many taxpayer’s but it’s the simplest way to avoid the NFTL.
- File an Offer-In-Compromise with the IRS, get it approved, and make the necessary settlement payments.
- Pay the balance below $10,000 and do Nothing.
- Pay the Assessed balance below $50,000 and set up a direct debit installment agreement. As long as taxpayer remains in compliance under the installment agreement, the IRS will not file an NFTL.
Over the next few weeks, we’ll continue to dig further into this topic and explore options to deal with an NFTL once filed by the IRS.
Do You Need Help?
If you need help with a Tax Lien or other IRS Collection issue, I’d be happy to talk with you. Please give me a call at (972) 821-1991 or email me at bob@jablonskyandassociates.
