What should you do when the IRS files a tax lien?

If you can’t informally convince the IRS to forgo recording a tax lien, here are some options to consider once the tax lien has been filed.

 

  1. Appeal the lien filing.  The IRS has 5 business days after the filing of the lien to provide written notice to the taxpayer.  The must include notice of the right to request a hearing within 30 days form the 6th day after the lien filing.  If you want he appeal, the lien will be withdrawn. Unfortunately, the lien filing will still appear on your credit report.

 

  1. Pay in full. If you don’t have the funds, you can always borrow from friends or relatives.  The IRS must release a lien within 30 days of full payment you can call the IRS Centralized Lien Office in order to verify that the lien has been released.

 

  1. Request a partial discharge. If you own several assets that are encumbered by the tax lien and want to use one to pay off the IRS, ask for a discharge from the tax lien.  The IRS will likely do this.