Tax liens hurt your credit score and credit report. For example, you may find it difficult to get a loan or buy a house. Fortunately, tax liens don't always remain on your property for good. The only way to solve a tax lien is to get a lien release or withdrawal. So, how do you go through the release or withdrawal process?

Discover various viable and legal options to handle your lien tax resolution.

1. Pay Your Tax Debt

Tax payment is the most direct and viable way for your lien tax resolution if you don't dispute the validity of your tax bill. Communicate and cooperate with the tax collection action to ease the payment process. You will likely pay extra fees or interest added to your balance from the original date onward. If the lien occurred because you could not pay the balance, resort to a payment plan.

2. Set an IRS Payment Plan

The IRS tax resolution process offers payment plans for qualified persons who cannot pay overdue taxes in full. You can choose a payment plan with short or long installments based on your preference. Still, the balance continues to accrue interests and penalties until you complete the debt. You could also seek guidance on how to go about the plan from a tax relief firm that offers IRS tax lien help.

3. Apply Lien Subordination

Subordination approves another person or creditor to subordinate the IRS' interest in your property. For instance, during home refinance, the IRS allows a lender to disregard the lien and proceed with the refinance. Nonetheless, the IRS only allows subordination if the process results in larger or quicker payments. Since the process is complex, partner with a tax resolution professional for guidance.

4. Apply for a Withdrawal

Withdrawal removes your tax lien as though the lien was not there in the first place. You get a lien withdrawal if you meet the following requirements:

  • The withdrawal facilitates the collection of the tax liability
  • The lien resulted from a false filing or was already paid off taxes
  • The withdrawal serves the best interest of the government and the taxpayer toward tax resolution

Fresh Start also allows you to get a lien withdrawal if you agree to a Direct Debit installment agreement. The agreement takes monthly payments from your checking account to your tax debt if you meet the requirements.


If the IRS removes your tax lien and you receive the official notice of release or withdrawal, contact the credit agencies. You have to follow up to ensure the credit agencies update your report and maintain your credit score. Besides, you wouldn't want to get another tax lien in the future. Thus, the way to avoid another tax lien is to pay your taxes on time and in full.

For more information, contact a tax resolution service in your area.