Tips on How to Remove IRS Tax Liens

In February 2011, we received great news from the IRS that as part of the Fresh Start Initiative major changes were being made to the Lien Process.  Not only did this change significantly increase the dollar thresholds when liens were filed, the IRS also agreed to remove liens if the taxpayer was on an Installment Agreement and the balance owed was below $25,000.00. 
In order to qualify:
For tax liabilities of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:

• Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
• The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
• The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.

Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored, typically 3 months of direct debit agreements.

In order to the start the request for lien removal you must complete and send to the IRS Form 12277.