Can a Tax Lien be Removed?

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Yes, a tax lien can be removed under certain circumstances. By paying the full amount, setting up a payment plan, or through other IRS programs, you may be able to remove a tax lien. Learn about the options and legal requirements to successfully remove or appeal a lien.

When you owe the IRS or state back taxes, one of the most severe consequences is the filing of a tax lien. This lien can significantly affect your credit and financial status, making it difficult to sell property, secure loans, or conduct other financial activities. But, can a tax lien be removed? The good news is, yes, it can be, depending on your situation and actions.

What is a Tax Lien?

A tax lien is a legal claim by the government on your property due to unpaid taxes. It is a powerful tool used by the IRS or state tax authorities to collect delinquent taxes. This can affect both your personal and business finances, so it’s crucial to address it promptly.

Options for Removing a Tax Lien

There are several options to remove a tax lien, each with specific qualifications and steps. Let’s explore these options:

1. Pay the Tax Debt in Full

The fastest way to remove a tax lien is by paying the amount in full. Once your debt is paid, the IRS will release the lien within 30 days. However, many people are unable to pay in full, making this option less accessible for some.

2. Apply for a Discharge of Property

If you’re selling property that is under a tax lien, you can apply for a discharge of property. This removes the lien from that specific property, though the lien may still apply to other assets.

3. Subordination

Subordination allows other creditors to move ahead of the IRS in priority for collecting debts. While it doesn’t remove the lien, it makes obtaining loans or refinancing possible.

4. Withdrawal

If you set up a payment plan and comply with the terms, you may qualify for a lien withdrawal. This means the IRS removes the lien from public record, though you still owe the taxes.

5. Offer in Compromise

An Offer in Compromise (OIC) allows you to settle your tax debt for less than the full amount owed. Upon successful completion, the lien can be removed. However, qualifying for an OIC can be challenging.

How Long Does a Tax Lien Stay on Your Credit?

If not addressed, a tax lien can remain on your credit for up to 10 years or longer, depending on the circumstances. However, certain actions, like setting up a payment plan or filing for a lien withdrawal, can expedite removal from your credit report.

Why Removing a Tax Lien is Important

Having a tax lien can limit your financial opportunities, from acquiring loans to buying property. Removing it not only restores your financial freedom but also protects your assets from seizure by the IRS.

Need Help? Talk to Tax Professionals

Facing a tax lien can be daunting, but you’re not alone. The team at Fortress Tax Relief has decades of experience in resolving tax issues and removing liens. If you’re struggling with a lien, contact us to explore your options.

Additional Resources

For additional information on tax liens and other IRS matters, you may want to visit these resources:

IRS: Understanding a Federal Tax Lien

Lea Caputo
The attorneys and staff at Fortress Tax Relief were professional, informative and efficient. They helped me significantly reduce my federal tax debt and gave me hope for my financial future. I chose Fortress because of their excellent reviews, knowledge and patience. Getting professional assistance was the best decision I’ve made.
Kelly Deshler
I can’t say enough good things about Fortress Tax Relief (David Feldman and Team)! From start to finish, their team was professional, patient, and incredibly knowledgeable. It took me a while to gather all my documents, but they never rushed me and were always supportive throughout the process. I had a significant tax debt—even though I was making my monthly payments, it felt like I was never going to get out from under it. To make matters worse, I added new taxes from the next year. I was completely overwhelmed. Fortriss stepped in and took the stress off my shoulders, handling negotiations over several months to get me a plan that was actually affordable and manageable. Their expertise and dedication truly made a difference. If you're feeling stuck with tax debt, I highly recommend Fortress Tax Relief—they helped me find a way forward when I couldn’t see one myself!
ladonna plascencia
Peter and Karlin at Fortress went above and beyond to help my dad resolve his IRS and CA DOR debts after he fell behind due to major medical issues. Their expertise and experience were evident, throughout the process—they knew exactly what to do and how to handle everything with confidence and efficiency. Beyond that they showed genuine care, respect, and kindness, acknowledging not just my dad’s financial struggles but his health challenges as well. Their professionalism and compassion during my dad’s final years made a stressful situation easier and we are incredibly grateful. Highly recommend Fortress!

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About the Author

Stephen K. Galgoczy, Esq.

Stephen K. Galgoczy, Esq. Steve is the founder and President of Fortress Financial Services. Steve has worked in the tax resolution industry, and has been representing taxpayers in collections with both state and federal governments, since 1999. Steve holds a Bachelor's Degree in Business Administration from the University of Washington (focus on Finance and Marketing) and attended Seattle University School of Law on an academic scholarship. He graduated cum laude and in the top 25% of his law school class. He holds a license in good standing with the Supreme Court of the State of Colorado and is admitted to practice in United States Tax Court. Steve Galgoczy has never been disciplined by the Colorado Bar Association. Before Fortress, Steve spent four years as the top Associate with two of the largest tax resolution firms in the United States. During his career as a tax resolution professional, Steve has personally handled over 1500 cases involving delinquent taxes and has had significant involvement in well over 2500 such cases. Steve has extensive experience handling some of the most difficult tax collection cases found in the world of tax resolution and is considered by many to be among the best tax resolution professionals in the country. Steve is also considered by many to be among the best in the nation when it comes to training other tax resolution professionals. He has trained a number of professionals who are currently employed by competing firms, including at least one professional who is an owner of a competing firm. Steve has also extensively trained every single Fortress attorney, which typically means more than 500 hours of one on one time with each attorney--and the vast majority of that time is spent working real life cases. While Steve’s primary focus is quality assurance for all Fortress clients, he is available to assist other Fortress attorneys when additional firepower is needed.