Federal Tax Lien on Businesses
- If the IRS files a tax lien against your property, you can ask an IRS manager to review your case or request a collection due process hearing with the office of appeals. Some of the grounds for appeal are that you have paid the taxes, the lien was placed on your property while you were in bankruptcy, the time to collect the tax had expired before the lien, you did not have an opportunity to dispute the amount of tax owed and you want to discuss collection options. If you lose before the IRS you can appeal to court within 30 days.
- You can apply for discharge if you are giving up ownership of property, like when you sell your house. Each application only discharges the lien on one piece of property.
- The lien can be withdrawn if the notice was filed too soon or violated IRS procedures, you have already entered into an installment agreement to pay the debt, withdrawing the lien would speed collecting the tax or would be in the government's and your best interest.
- The IRS will release a lien within 30 days after you pay the taxes or post a bond guaranteeing payment. Usually the government will automatically release a lien 10 years after it is placed. If the IRS knowingly or negligently does not release the lien by then, you can sue the government but not IRS employees.