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Client Testimonials

I became totally and permanently disabled after a working for 44 years. I returned to college late in life (while working full-time) to fulfill my dream of becoming an RN and at that time found it necessary to secure student loans. Three years after being declared totally and permanently disabled my student loans were discharged. In January 2013 we received a 1099-C form declaring said student loans that were discharged however that amount could be considered as income for 2012. This was a large amount of money and we live on two pensions and social security income.

I started looking on the internet for information regarding 1099-C and felt that this was something that we could not handle alone. I made phone calls locally to a very reputable tax group in a city near us and they said it would cost $500 for an appointment and that they really prefer to do corporate taxes and they referred me to a local person who had worked for them at one time, we called and explained the situation and an appointment was made and then the comment was made that "I will have to do some research on this" and flags immediately went up and we called back and cancelled that appointment. I had been researching the IRSwebsite and every place else I could think of and I was not comfortable doing our own taxes this year. We called another local tax preparer that we had used in the past and made an appointment, however prior to the appointment, while still seeking information regarding our situation,

I came across a website for Gary l. Bode, MSA, CPA, PC in Wilmington, NC. I called Mr. Bodeand explained our situation and asked if he could help. He spoke very knowledgeably regarding the situation and stated that yes; he felt he could help us. As Mr. Bode was in North Carolina and we were in New York I scanned all of our documents including back-up documents for all of our claims and forwarded all to him. Mr. Bode kept in touch with us via email; we have spoken on the telephone several times and have become very comfortable with his knowledge and professionalism. Also, as I am a true "worrier" I have continued looking into information regarding our tax situation and I came upon another web page for Mr. Bode that included testimonials which spoke of his experience with this type of tax situation as it became prevalent during the recession. This reinforced in our minds that we had made the right decision in hiring this person as our tax preparer.

I share all of this as our taxes are now ready to be filed (we do owe tax for 2012 but not the astronomical figure we thought we were facing), and we are confident that they have been prepared with the utmost care by a gentleman who has an excellent working knowledge of the situation we faced and the tax laws that were applicable to said situation.

 

Bill and Carol

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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IRS Tax Lien Withdrawal CPA offers tips on Form 12277 | Form 8821 CPA discusses positioning while the IRS Federal Tax Lien is in place

IRS tax lien CPA. IRS lien withdrawal CPA. IRS tax form 12777.

Sometimes an IRS lien is more of a stalemate than an end move. I’ve presented some examples of options you might have left, even though you’re in check. (910) 399-2705.

As an IRS tax lien CPA I often have new Clients in the end stages of an IRS battle. But there are can still be cards to play.

You may not need an IRS tax lien withdrawal CPA to file Form 12277. Remember, there are still positioning strategies that might help you get on with your financial life sooner, even before release of the federal tax lien. If you need CPA help, consider calling us at (910) 399-2705. Sometimes experience counts.

Release vs. withdrawal for IRS tax liens

  • A release is a formal document showing the tax lien is paid in full.
  • A withdrawal means they’ve taken the lien off your records.
    • Otherwise the credit agencies show it on credit reports for seven years.

IRS tax liens vs. levies

  • A tax lien is a public document showing you owe the IRS money. It may specify claims to certain assets, which means you can’t sell them.
  • An IRS levy means the IRS seizes assets covered in the tax lien and/or garnishes your wages.

Steps in the Federal Tax Lien and Tax Lien Withdrawal Process

  • Lots of preliminary IRS Notices arrive, each escalating the threat of a tax lien.
    • It’s better to avoid an IRS tax lien if there’s enough time to maneuver.
  • The IRS files the tax lien.
    • The amount includes penalties and interest.
  • They perfect the federal tax lien with the local county Register of Deeds.
    • Now the IRS is the alpha dog among your creditors.
  • You receive some version of IRS Form 668(Y)(c) notifying you of the lien.
  • All three credit reporting agencies show the federal tax lien on your credit reports.
    • Bingo, no bank or finance company will work with you.
    • Employers balk at your job application.
  • Sometimes the IRS levies (seizes) your bank account or garnishes wages.
    • Every tax lien CPA and IRS agent has horror stories about the consequences of an IRS tax levy.
  • You pay off the lien, often with a direct debit Installment Agreement.
    • Other tax delay or relief techniques include:
      • An Offer in Compromise. Maybe the IRS will accept less than what you owe as full payment, even with the lien.
      • Being placed in currently uncollectible status. Here there’s no IRS levy or garnishment. Sort of like an IRS purgatory.
    • Don’t forget to ask for penalty abatement before paying the IRS lien off.
  • While the lien is in place some positioning is possible that allows partial relief.
    • Check out Form 8821 and a payoff letter to make yourself more attractive to new creditors.
      • Sometimes creditors will work with you if the tax lien balance is small enough.
    • Maybe the IRS will release asset so you can sell it privately.
      • If the IRS auctions it off, lots of equity escapes with the last gavel strike.
    • Read about other strategies below.
  • They release the lien. But it still stays on your credit report for seven years.
  • You ask the IRS withdraw the Lien through Form 12277.
  • You get the credit reporting agencies to drop the lien from your credit reports.
  • Don’t forget about your State. Coordinate your efforts with them too.

“There are still positioning opportunities open even before the IRS releases the lien.”
– Gary Bode, Form 8821 CPA

IRS Lien withdrawal before the lien is released

If you’ve been on an Installment Agreement (Form 9465) with the IRS, that uses automatic debits to your account, the IRS may allow lien withdrawal even the lien isn’t paid in full.

Other Sources of Help for Form 12277

  • Call the IRS. They do thousands of tax liens. But they’re not always anxious to release or withdraw them.
  • IRS Form 12277 instructions.
  • Search the IRS website, lots of info pops up.
  • The Internet.
  • The taxpayer advocate.

Our website has multiple postings on Forms 668, Form 12277 and advice on how to prevent a tax lien (if there’s time). You can find them in the drop down Forms and Category lists in the right sidebar. Or by using the search bar. Your specific fact pattern determines how to approach tax lien withdrawal and maneuvering. Our advice helps but each case is different.

“Several strategies exist to coax the IRS to withdraw the federal tax lien even before the lien is paid in full. Maybe you can position yourself as an acceptable candidate for early withdrawal.” 
– Gary Bode, IRS tax lien release CPA

Here’s some of what the IRS Website Offers

Cut and pasted.

Definition of a Federal Tax Lien

The federal tax lien gives the IRS a legal claim to the taxpayer’s property for the amount of the tax debt. The lien can be enforced for the amount of the taxpayer’s liability.

Filing a Notice of Federal Tax Lien

Filing the Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money. Other creditors may also hold liens or secured rights against a taxpayer’s assets in the amount of indebtedness.

By filing the Notice of Federal Tax Lien, other creditors are publicly noticed that the United States government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time of the notice of lien is filed and any acquired thereafter. This notice is used by courts to establish priority in many situations, including bankruptcy proceedings or sales of real estate.

It is critical that local recording offices ensure that Notices of Federal Tax Liens are promptly filed and properly recorded. Failure to file and properly record the Notice of Federal Tax Lien in the local recording offices may jeopardize the United States government’s priority right against other creditors. This is extremely important to the interests of the federal government, other government entities, credit providers, and taxpayers in general.

“The best way to handle an IRS Federal tax lien is to avoid it. Many times I see folks who could have circumvented the IRS tax lien easily with less penalties and stress.”
– Gary Bode, IRS tax lien release CPA

Sometimes Tax Liens are Self-Releasing

This is uncommon. Look for a blurb beneath your name and address. Even if it self-releasing, you must request it be withdrawn.

Partial Releases

The IRS sometimes lists multiple folks on the tax lien. If you’ve paid off your share they may offer a Partial Release.

What if the IRS has made a Mistake (and yes this happens)

Try to get them to revoke the tax lien.

Lien Discharge

If your tax lien includes assets and you want to sell one of them, try getting the IRS to discharge that asset to facilitate transfer.

Can you remove the IRS as Alpha Dog Creditor?

Sometimes, for a specific asset they’ll subordinate that asset allowing another creditor to use it as collateral. So there some moves available even after the lien is perfected.

What do I do if there is someone or a Financial Company that’s willing to Help?

You can request a payoff letter using Form 8821. Allow a few weeks for the IRS to process Form 8821. The payoff letter shows the balance still outstanding on the federal tax liens.

Do you need a Form 8821 CPA or a Form 12277 CPA?

It depends on your comfort level. Sometimes we get involved with presenting Form 12277 because of the various strategies available to prod the IRS to offer early withdrawal. You’re presenting case before the IRS and experience helps. Other times we help clients maneuver while the tax lien is still in effect. Call (910) 399-2705.

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