Under What Conditions Will The IRS Withdrawal A Lien?
The IRS will withdrawal a lien under two separate conditions. 1) With the full payment of the debt, when in full compliance with other tax requirements and 2) Upon entering into a Direct Debit Installment Agreement while meeting specific conditions.
Full Payment of the Debt, While In Full Tax Compliance
The IRS will withdrawal your lien if you pay your IRS debt in full and you meet the following conditions:
- You have filed the last three individual and business returns, and;
- You are current on your estimated tax payments and/or federal tax deposits.
In A Direct Debit Installment Agreement, Under Specific Conditions
If you have entered into an Installment Agreement under the Direct Debt Program and fall under the following conditions, the IRS will withdrawal the lien:
- You are an individual owing only an individual income tax liability
- You are a business, still in operation, owing business income tax liabilities only. Note: payroll tax liabilities are not eligible for a lien withdrawal until the debt is paid in full.
- You are a business no longer in operation, which owes any type of debt.
- You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the lien)
- The amount you agreed to on your Direct Debit Installment MUST fully pay the total balance within 60 month or before the Collection Statute expires, whichever is earlier
- You are in full compliance with tax filings and estimated tax payments
- You can’t have defaulted on your current, or any previous, Direct Debit Installment agreements
- You have made three consecutive direct debit payments