Installment Agreement Does Not Prevent The IRS From Filing a Notice of Federal Tax Lien

Posted on April 14, 2015

Do you have an installment agreement with the IRS regarding your unpaid tax liabilities?

Even with an active installment agreement in effect, keep in mind that the IRS can still file a Notice of Federal Tax Lien on your unpaid liability.

In a recent Tax Court case, the taxpayers argued that the IRS improperly filed a Notice of Federal Tax Lien against them after entering into an installment agreement with the IRS to pay their unpaid tax liabilities. The Tax Court held that the installment agreement did not prohibit the IRS from filing a Notice of Federal Tax Lien and that the filing of a Notice of Federal Tax Lien was proper.

Has the IRS filed a Notice of Federal Tax Lien against you even though you are in an installment agreement? We have successfully persuaded the IRS to withdraw a Notice of Federal Tax Lien for our clients.

However, the amount you owe to the IRS and the type of installment agreement that you are in is key to determining whether we can obtain the withdrawal of a Notice of Federal Tax Lien. If you would like to explore the possibility of withdrawing the Notice of Federal Tax Lien, call us, we can help.