Delinquent tax debts can sometimes lead to a lien being placed on your property. With legal help, you can make an agreement to resolve an IRS lien in Washington DC.

The first step in resolving a lien is to review the balance due from the taxpayer and the collection statute expiration date. A tax attorney could also review the individual’s ability to repay the IRS and Form 433A, Collection Information statement, Collection Information Statement. The attorney would then review collection alternatives such as installment agreements, Offer in Compromise, or Currently Not Collectible status, as well as review lien resolution options such as discharge, subordination, and withdrawal.

Installment Agreement to Resolve a Lien

An installment agreement is essentially a monthly payment plan. Depending on the amount due and the amount of time the IRS has to collect the debt, a taxpayer could secure a full pay installment agreement or a partial pay installment agreement. This type of agreement could allow the taxpayer to make manual payments (such as writing a check) or paying online every month. In certain situations, the taxpayer may be required to set up a direct debit installment agreement. If so, the IRS pulls an agreed-upon amount of money out of their bank account on a monthly basis.

In order to be eligible for an installment agreement, a taxpayer must be in current compliance with both filing their tax returns and paying what they owe in the current tax year. The IRS has a 10-year collection statute of limitations. In certain situations, the IRS could allow the tax debt to be paid over 72 months.

Streamlined Agreement to Resolve a Lien

The streamlined installment agreement was introduced as part of the 2011 IRS Fresh Start initiative to make it easier for taxpayers to resolve their tax debt. If a taxpayer wants to be eligible for a streamlined agreement, their tax debt must be under $50,000 for individuals and under $25,000 for businesses.

A DC attorney could negotiate a streamlined agreement by contacting the IRS for a compliance check to review balances and see if the taxpayer filed all their returns. They will calculate installment agreement terms to fully pay the IRS within the earlier of 72 months or the collection session limitation expiration date. They can then choose the payment date and method. The IRS may require a direct debit installment agreement if the tax is over $25,000.

What Are Some Options Available to Pay Taxes in Full?

The IRS does not ask where the money comes from but most people who are trying to fully pay their delinquent tax debts would look to tap into their large assets. That could mean selling or refinancing their home, dipping into their life savings or retirement accounts, and other similar assets. Other people may ask for help from families and friends, or take out a loan. A lawyer can strategize with a taxpayer about the most efficient way to resolve the lien.

Talk to a DC Attorney About Resolving Your IRS Lien With an Agreement

The IRS allows Washington DC taxpayers to sign on to an agreement to resolve their tax lien. Pontius Tax Law can work with you to find the right path forward. If your tax debt is $50,000 or more, schedule a consultation with us to see if you qualify for lien assistance.

Attorney John Pontius

Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC,  Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.

Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.

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John helped us with a DC tax audit and succeeded in getting us a "no change" final decision. The issues were related to two flow-through entities and the use of carry-forward operating losses -- something that the DC auditors struggled to understand and with which they did not have any...
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Mr. Pontius is extremely professional and was able to take care of my tax returns which includes international bank accounts quickly and at a very reasonable price. Would definitely recommend.
I received a fee this past November from the IRS for over $800 because of an error I made on my 2016 taxes. I called my cousin, John Pontius, and he immediately knew what steps needed to be taken. Thanks to him, the fee was cleared. A 10 minute conversation...
As an American citizen living in the Middle East my local banker informed me that I needed to file FBARs and report my worldwide income to the IRS. Through the recommendation of another attorney at an international law firm, I was introduced to John Pontius. Mr. Pontius efficiently and effectively...
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John handled a difficult IRS lien for my client. He was excellent in getting the lien released so we could close on the property. I would highly recommend John .
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