Once you are indebted to the IRS, it could be challenging to repay your tax liability and get out from underneath your debt. If your debt continually grows, the IRS could issue a tax lien against some of your assets. The IRS does this to coerce you into paying your unpaid taxes. Fortunately, however, there are some ways for taxpayers to avoid a tax lien by the IRS. Five of the simplest ways to avoid an IRS tax lien are below.
If you owe money to the IRS, one of the best ways to avoid a tax lien is by paying them.
Pay Your Owed Taxes In Full
The quickest way to stop a lien, if you have the funds to do so, is to pay back your balance in full. You can pay the IRS from a credit or debit card, or directly from your bank account. The IRS also permits you to pay with a check, money order, or by using their online Electronic Federal Tax Payment System. Nothing beats the feeling of relief you’ll have after paying down your debt.
Pay Some of Your Taxes
A federal tax lien will kick in once you owe more than $25,000 in taxes. To avoid a tax lien, you should pay down your balance, so that it is less than $25,000. Then, you could work to come up with a plan to repay the remaining balance without having your assets seized by the IRS.
The IRS may also be willing to negotiate a repayment agreement. One of the terms of this agreement, on your end, is that the IRS does not place a lien on your assets.
Negotiate a Streamlined Installment Agreement
This agreement is for those who owe the IRS between $10,000 and $25,000 in back taxes. When you enter a streamlined installment agreement, you agree to pay back the IRS with specific monthly payments. The payments last as long as you have a balance on unpaid taxes, so the length of the agreement and the payment terms could vary.
Negotiate a Guaranteed Installment Agreement
This agreement is similar to the streamlined installment agreement, except that it is intended for those with a balance between $1 and $10,000. You should only consider this option if you cannot pay your remaining balance.
Negotiate an Offer in Compromise
An offer in compromise allows you to waive some of your IRS debt. The IRS has stringent requirements about who is eligible for an offer in compromise.
Reach Out To Your Tax Relief Experts
Even if you’ve taken the above measures, the IRS may still harass you to pay your unpaid debts. The best way to stop IRS harassments and come to a resolution about your taxes is by contacting your local tax professionals at Tax Relief Advisers. We can work with you to help repay or remove your IRS debt. We’ll also contact the IRS and take over all communications so that you are no longer bothered by the organization.