installment agreement to a Direct Debit Installment Agreement (DDIA). According to IRS.gov, general eligibility includes: • you are a qualifying taxpayer (e.g., individuals, businesses with income tax liability only, and out-of-business entities with any type of tax 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 Notice of Federal Tax Lien) • your DDIA must pay in full the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier • you are in full compliance with other filing and payment requirements • you have made three consecutive direct debit payments • you can’t have defaulted on your current, or any previous, DDIA
LIEN PRIORITY
A federal tax lien resulting from unpaid federal income tax trumps all other liens in terms of priority, unless subordinated as discussed above. Mortgages are the most common type of lien; however, there are others, such as tax liens for unpaid property taxes and mechanics lien for outstanding construction contracts. Other than tax liens, liens have priority in the order of filing. For example, if you have a mortgage with Bank A from 2013 and a second mortgage with Bank B from 2015, Bank A has priority (first rights) to the property. If you satisfy Bank A’s mortgage, Bank B becomes top priority. Any future filings will be secondary to Bank B. The exception to this rule is a tax lien, which always takes priority.
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