The IRS has announced a new series of steps to help people with their tax liabilities and with avoiding tax liens. The changes to the IRS’s lien filing systems include:

• Significantly increasing the dollar threshold for issuing liens. Currently, liens are automatically filed at certain dollar levels for people with past-due balances.

• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill. Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. In order to speed the withdrawal process, the IRS also will streamline its internal procedures to allow collection personnel to withdraw the liens.

• Withdrawing liens in cases where a taxpayer with unpaid assessments of $25,000 or less enters into a Direct Debit Installment Agreement. Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.

• Creating easier access to Installment Agreements for more struggling small businesses. Small businesses with $25,000 or less in unpaid tax now can participate in the installment agreement program. Small businesses will have 24 months to pay.

• Expanding the Offer in Compromise program to cover more taxpayers. This program is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000.

“We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start, IRS Commissioner Douglas Shulman said in announcing the changes. These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.

What is a Tax Lien? A federal tax lien gives the IRS a legal claim to a taxpayer's property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against other creditors. Usually the government is not the only creditor to whom the taxpayer owes money.

A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any property acquired afterwards. A lien can affect your credit rating; therefore, it is critical for you to arrange for payment of taxes as quickly as possible.

Tax liens generally are filed with the recorder or clerk of the county where a taxpayer’s assets are located.

In preparing your small business tax return for your Northeast Philadelphia Small Business, please do not hesitate in contacting your Northeast Philadelphia Tax Accountants at 215-667-8839. We proudly provide accounting and tax preparation to small businesses in Northeast Philadelphia.


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