- 1). Pay the tax debt. If you have a tax lien, you will need to pay the full taxes owing for the lien to be removed by the IRS. If you do not have the money available to pay the tax liability, consider taking out a loan to pay it. However, lenders may be wary of loaning money to you if you have a tax lien, so you may need collateral, such as personal property, real estate or an automobile to secure the loan.
- 2). Discuss payment arrangements with the IRS. You may be able to obtain information regarding possible payment arrangements through the IRS website at www.irs.gov. (See Reference 3.) If not, you can contact the IRS by calling them directly at 1-800-829-1040. You may want to ask the IRS for payment arrangements, which could include monthly payments or a lump sum settlement amount, which is usually accepted by filing an Offer in Compromise. (See Reference 1.) If the IRS does not provide you with this form, it can be downloaded from their website.
- 3). Sell your property. When you sell your property, the tax lien will have to be paid or settled before you can transfer ownership of the property. (See Reference 2.) After doing so, the government should release the tax lien automatically. If the lien is still showing due, contact the IRS to see if they will remove it. You may also want to ensure it is removed from your credit reports. You may be able to submit your receipt showing where you paid or settled the tax lien to the credit reporting agencies, and they may remove it for you.
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