Author Archives: Jeramiah Young

Ask the IRS to Remove an Old Tax Lien

You must ask the IRS to withdraw a tax lien once the tax liability is fully paid.

The Service will withdraw the lien:

  • Provided you have paid your tax bill
  • The IRS has released the lien
  • You have been tax-compliant for the past three years

A withdrawal of a tax lien expunges the lien immediately from the debtor’s records, and it is as if the lien had never been filed. Use Form 12277 to request a withdrawal.

You may ask for a lien withdrawal even if you haven’t fully repaid the debt, provided the amount that you currently owe the Service doesn’t exceed $25,000 and you agree to pay off the rest via monthly debits from your bank account.

Kiplinger Tax Letter

October 2020

Do You Know That Business’s Suffer From Identity Theft Also?

Business tax identity-theft refund fraud continues to be a growing problem. This occurs when fraudsters use stolen or fabricated employer identification numbers to fill bogus corporate and payroll tax returns and other forms to claim false refunds.

The Service has steps that businesses can take to safeguard their own data and those of their customers. See IRS Pub. 4557 on how to create a data security plan. Also review “Start with Security: A Guide for Business” from the Federal Trade Commission.

If you suspect your business may be a victim of identity theft, complete a paper IRS Form 14039-B, Business Identity Theft Affidavit.

Kiplinger Tax Letter
October 2020