to discharge the lien to allow for the completion of the sale. Taxpayers or lenders also can ask a federal tax lien be made secondary to the lending institution’s lien to allow for the refinancing or restructuring of a mortgage. The IRS currently is working to speed requests for discharge or mortgage restructuring to assist taxpayers. To assist struggling taxpayers, the IRS plans to significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances. The IRS plans to review the results and impact of the lien threshold change in about a year (late 2018). Also, the IRS is making other fundamental changes to liens in cases in which taxpayers enter into a DDIA (or Direct Debit Installment Agreement). Further, the IRS will modify procedures that will make it easier for taxpayers to obtain lien withdrawals. Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS must release your federal tax lien when 1) the liability is unenforceable; 2) the 10-year statute of limitation has expired; or 3) a bond has been accepted by the IRS. The IRS won’t issue a formal release of the federal tax lien if, on each of the tax years, the statute expired. Unless you ask for a formal release of the federal tax lien, a paper release won’t be generated. It’s important to contact the credit bureau and ensure each agency has picked up the release. It is wise to confirm this 30 days after the releases of the federal tax liens.
IRS CERTIFICATE OF RELEASE
According to IRS.gov, Section 6325(a) of the Internal Revenue
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