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Question

If you have a tax lein, can it be removed within 14 business days, and can your penalities and interest be dismissed? I was told this by a tax relief agency

Submitted: 109 days and 6 hours ago.
Category: Tax
Value: $20
Status: CLOSED
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Posted by Merlo 109 days and 6 hours ago.

Info Request

Is this a lien on your personal property by the IRS or a state agency?

Have you made any other arrangements to pay the tax that is due?



Edited by Merlo on 8/6/2009 at 12:05 AM

109 days and 6 hours ago.

Reply

Its a lein on my personal property by the IRS. No I have not made any payment arrangements with the IRS yet, because I want to negotiate the amount I must pay back.

I must act now because it shows up on my credit report and I can't get a job with the lein on my credit report. The tax relief agency claims they can have it removed within 14 business days, before I pay the IRS and they can get the penalities and interest removed. IS THIS POSSIBLE? Can I do it myself?

Posted by Merlo 109 days and 6 hours ago.

Answer

Hello stew,

What this company is telling you is not the case.

Once a lien has been placed on your property, the only way to have it removed is to either pay the tax that is due, or settle with the IRS by submitting an Offer in Compromise for a lower amount and paying that amount, or by establishing an acceptable payment plan.

As far as penalties and interest -- The IRS will sometimes waive all or a portion of the penalties if you can show reasonable cause as to why the taxes were not paid on time. The interest is something that they will never waive under any circumstances.

Many of these tax relief agencies will tell you anything they think you want to hear just to get you to pay their fees, but this is not something they can accomplish.

If you want to negotiate the amount that you actually owe by submitting an Offer in Compromise (OIC), then while this is something that you can do on your own, it might be beneficial to have the assistance of a tax attorney or an enrolled agent who is more familiar with the filing of these forms, and who knows what the IRS is likely to accept in your particular situation.

If you are simply wanting to set up a payment plan, this is something you can do on your own. Here is a link to a page in the IRS website which discusses the steps you should follow to set up an installment plan.

http://www.irs.gov/businesses/small/article/0,,id=108347,00.html

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you stew, and let me know if you have more questions. I am happy to help you with whatever I can.

109 days and 5 hours ago.

Reply

Thank you I figured as much. I started to discuss an OIC with IRS and submitted some paperwork, but they are very difficult to deal with and just wanted to dismiss everything I claimed as expenses in order to say I can afford to pay the full amount. My husband and I are both self employed. At this point I have no idea what to do and who I can trust to help me

Accepted Answer

Hello again stew,

I do understand your frustration and not knowing where to turn for help.

My suggestion to you would be to contact someone in your area who is an Enrolled Agent with the IRS. Generally their fees will be lower than a tax attorney, and they are just as skilled in these matters as a tax attorney would be.

Here is a link to a page in the Natl Assoc of EA's where you can find an enrolled agent in your area. I would suggest finding an EA to call and explain the situation you are in, and let him tell you what he could do to help you. Also make sure you get a fee quote from him up front before proceeding.

https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx?Token=

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you stew, and best of luck to you in getting this resolved. I do understand how stressful these situations are, but I think you might feel better after discussing this with an EA. At least he will be truthful with you on what can and cannot be done here.



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Expert: Merlo
Pos. Feedback: 99.8 %
Accepts: 
Answered: 8/6/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

109 days and 5 hours ago.

Reply

Thank you, I go to the website and try

Posted by Merlo 108 days and 18 hours ago.

Answer

Thank you stew, and good luck to you.

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