Tax Lien Removal refers to the process of lifting a tax lien that has been placed on an individual’s or entity’s property due to unpaid taxes. A tax lien is a legal claim by the government against the property when the owner fails to pay tax obligations.
To remove a tax lien, the taxpayer must typically satisfy the underlying tax debt, which may involve paying the owed amount in full, entering into an installment agreement, or applying for a lien withdrawal through the IRS or state tax authority. Once the criteria are met, the agency will file a release of the lien, officially clearing the property of the tax claim.
For example, if a homeowner has a federal tax lien on their property for unpaid income taxes, they can request tax lien removal by either paying the owed taxes or negotiating a settlement with the IRS. Once resolved, the IRS will issue a lien release, allowing the homeowner to sell or refinance the property without the tax lien hindering the transaction.
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