Many taxpayers who are facing a federal tax lien may feel that they are out of options. While it's true that a tax lien is typically one of the most severe penalties that the IRS can levy, there are a few situations in which a taxpayer can get an IRS tax lien removed. Doing so requires obtaining a written document from the IRS called a Certificate of Discharge from a federal tax lien. If you're able to receive one of these certificates, you can have the federal tax lien removed from your property.
When the IRS issues a federal tax lien, it lays claim to the profits from a sale of property. For taxpayers who owe large amounts of money to other obligations, though, this can pose real financial problems, especially if they are unable to meet their other obligations on their own. In some cases, the IRS is willing to allow other creditors to receive profits from the property sale ahead of the government. This process is done by applying for a certificate of subordination of a tax lien. However, since the agency does not grant all of these requests, it is essential that taxpayers who apply for the certificate follow the application guidelines carefully.
The prospect of resolving a federal tax lien can be a frightening one for any taxpayer. Owing a large amount of money to the IRS can make it difficult for taxpayers to take care of their other responsibilities, which may prevent them for collecting funds to repay their obligation. Once a tax lien has been enforced, the IRS will only remove it after the full obligation has been paid. However, the agency can do this through either a tax lien withdrawal or a tax lien release. The end result of both processes is the same, but the manner in which the IRS removes the lien can have a significant impact on taxpayers' credit ratings.
Individuals who have immigrated to the United States must abide by the IRS rules for resident and non-resident aliens. While there are special considerations for these individuals who file tax returns, they are still required to submit their returns on the annual deadline along with naturalized U.S. citizens. The IRS allows for three categories of immigrants: resident aliens, non-resident aliens, and dual status taxpayers. Choosing the proper tax status is important because it directly affects the way immigrants file their returns.
