A tax lien is a legal claim by the government on an individual’s assets when they fail to pay their tax obligations. If you owe the IRS, the agency can legally claim your property to offset the debt. This can greatly affect your ability to access credit, sell your property, or even run your business smoothly. So, can you negotiate the amount of your tax lien? The answer is, yes! You can negotiate the amount of a tax lien. But it requires knowledge, strategy, and professional guidance.
Understanding A Tax Lien
A tax lien is one of the IRS’s tools to recover unpaid taxes. This typically occurs when an individual intentionally or unintentionally fails to pay their tax debt after receiving a notice. The lien is placed on all the person’s property. This includes both personal property and business assets, as well as any property acquired while the lien is in effect.
Negotiating a tax lien is a complex process that involves presenting your case in a compelling manner to the IRS. You will need to provide evidence that supports your position, whether you’re arguing a case for financial hardship, disputing the owed amount due to inaccuracies, or proposing an Offer in Compromise (OIC).
Strategies to Negotiate the Amount of Your Tax Lien
In order to negotiate the amount of a tax lien, you will need to select a strategy such as proving financial hardship, disputing the amount, or agreeing to an offer in compromise.
Financial Hardship Case
If you’re experiencing financial hardship, you can present a case highlighting your inability to meet the tax obligations. This demands providing substantial proof showing that you genuinely cannot pay the amount without causing financial distress.
Disputing the Owed Amount
If you believe that the IRS has made an error in calculating your tax liability, you can dispute the owed amount. It’s essential to have detailed financial records to challenge the IRS calculations correctly.
Offer in Compromise
An Offer in Compromise is an agreement between the taxpayer and the IRS to settle the tax liabilities for less than the full amount owed. The IRS will consider an OIC under specific circumstances such as doubt as to collectability, economic hardship, or doubt as to liability.
Emphasizing Professional Guidance
Negotiating with the IRS is a serious and complex process. Seeking help from a professional can significantly increase the chances of your negotiation being successful. Professionals have an in-depth understanding of tax laws and are experienced in handling negotiations with the IRS. They can help you gather compelling evidence to support your case and can guide you through the negotiation process.
Creative Tax Solutions can assist you in this challenging process. The company is a professional tax relief service firm known for providing high-quality accounting, tax, and advisory services. Our mission is to help our clients gain control of their debts and finances, reducing stress and enabling them to focus on their family’s future and running their businesses.
The team, including Thomas Patti, Marla Klein, Adam Hastie, and Don Murry, offer expert advice and services in tax matters and are experienced in dealing with IRS negotiations. With our free consultations with no obligations, Creative Tax Solutions has served over 20,000 clients, helping them navigate the complex world of tax liens and other tax issues.
In conclusion, while it is very much possible to negotiate the amount of your tax lien, it’s highly recommended to seek professional help to ensure that the negotiation process unfolds smoothly and favorably. Creative Tax Solutions can offer you such professional guidance, leveraging their wealth of knowledge and experience to help you resolve your tax lien issues effectively.