The IRS has announced recent changes to its procedures regarding tax liens that will make it easier for some taxpayers to avoid liens on their credit or property. A tax lien is typically issued when a person owes back taxes, and can affect whether or not a person can get loans or sell their home or other assets. Some employers even check for liens, making it difficult to apply for certain jobs.

The IRS does not divulge a minimum dollar amount a taxpayer must owe to have a lien, but did state that they were “significantly increasing” that amount, so that there would be less tax liens issued overall. More good news for taxpayers owing less than $25,000 is that if they set up a Direct Debit Installment Agreement, the IRS will withdraw any liens. If a taxpayer is already on an Installment Agreement, they can qualify for lien withdrawal by switching to a debit payment arrangement. The IRS also stated that they are simplifying the process of making sure a lien is removed once a person’s tax bill is paid in full.

In addition to these changes, the IRS also plans to make Installment Agreements more accessible to struggling small businesses, and streamline the Offer in Compromise program so that more taxpayers would qualify. Currently, only small businesses owing $10,000 or less qualify for a streamlined Installment Agreement; the new maximum would be $25,000. For Offers in Compromise, the IRS has raised the maximum taxpayer income level, allowing those with incomes up to $100,000 to participate.

There are many options for dealing with your overdue taxes. If you have questions about your back tax bill and what programs you might qualify for, don’t hesitate to contact us at 1-877-TAX-BILL.