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How to Remove a Tax Lien in Florida? 2024

Owing taxes to the IRS (Internal Revenue Service) or Florida state government is stressful and can result in actions like tax liens on your property. Tax liens can cause significant financial hardship and can even result in the property being seized if left ignored. In the meantime, it can impact your ability to get credit or sell the property. One way to avoid the long-term financial consequences is to get the lien removed as quickly as possible.

Understanding a Tax Lien

The state or federal government can place a tax lien on your property. When an individual owes back taxes, the government will put this lien on the property, claiming it as potential compensation for unpaid debts. Property that could be put under a tax lien includes:

  • Real estate
  • Homes
  • Vehicles
  • Stocks, bonds, and investments
  • Future assets

If those debts continue to be unpaid, the government can issue a tax levy, which then takes the property from you as compensation. Even if the property is foreclosed, the tax lien remains.

Tax liens are automatic when you haven’t paid taxes and meet specific requirements. The state or federal government must first:

  • Determine the individual’s or business’ debt and liability.
  • Provide the individual or business with a bill explaining that liability.

If you have missed any tax payments, you likely have a tax lien on your property and should have received a notice in the mail. You can check with the IRS or your county to determine if there is a lien on your property.

What Can a Tax Lien Do?

There are several consequences that a tax lien can have if you continue to not pay your tax debts. This includes:

  • Your home will be foreclosed on.
  • Your property will be levied.
  • You are unable to sell or transfer the property.
  • Your credit is lower.
  • You have difficulty gaining credit.
  • The tax lien is public information.
  • You are unable to gain certain security clearances.

It’s important to work to get a tax lien removed as soon as possible. It can be helpful for many taxpayers to work with a Jacksonville, FL, Tax Lien Attorney to quickly assess their options for tax debt and removing liens.

How to Remove a Tax Lien

The most straightforward way to remove a tax lien is to pay off all outstanding debt. You can prevent more severe penalties, like a property tax levy, by paying off tax debt and interest and ensuring that the tax lien is removed and debts are settled.

The reason many people get into tax debt in the first place is because they are unable to pay it. You can also set up a payment plan if you are unable to cover your debts. This allows you to avoid other penalties and get the lien removed.

Another option includes an Offer in Compromise. If you qualify, this allows you to settle your debt with the IRS for less than you owe. You can file for an Offer in Compromise for one of the following reasons:

  • Doubt as to Liability: This means there is a reasonable doubt you owe all or any of the tax debt.
  • Doubt as to Collectability: If you have fewer assets and income than the amount of debt owed, there is a reasonable doubt that the IRS can collect the debt.
  • Effective Tax Administration: This means paying your tax debt could place you in financial hardship or would be unfair.

Withdrawal of Tax Liens

You can also ask for a withdrawal of the notice of federal tax liens. The notice is in the public record of the lien, which can make applying for credit difficult. A withdrawal does not forgive your outstanding debt. You may be eligible for a withdrawal for one of the following reasons:

  • The notice for the tax liens was not filed according to federal procedure.
  • A payment agreement was made that did not provide for filing a notice of the lien.
  • Withdrawal will allow the debt to be paid in full.
  • You agreed to a Direct Debit Installment Agreement (DDIA).
  • Withdrawal is in the interests of the IRS and you.

If the debt liability has been satisfied, and the lien has been released, the general requirements for withdrawal eligibility include:

  • You filed all individual and business tax returns in the last 3 years.
  • You are current on estimated tax payments and deposits.

There are additional eligibility requirements for taxpayers who have entered into a Direct Debit Installment Agreement.

FAQs About How to Remove a Tax Lien in Florida

How Do I Get a Tax Lien Removed by the IRS?

The most effective way to get rid of a tax lien is to pay your full tax debt to the state or federal government. A federal tax lien will be released within 30 days after a tax debt is paid in full. In some circumstances, there are other options available for taxpayers, such as a withdrawal or a discharge of property.

How Long Does a Tax Lien Last in Florida?

If a tax debt is left unpaid, tax liens have a statute of limitations in Florida. Tax debts can only be collected before the lien has expired. If the certificate has been sold, the taxpayer has contested the legality of the lien, or the property is under a homestead exemption, the statute of limitations is 20 years. Otherwise, the statute of limitations is 5 years. The statute of limitations begins from the date the tax was assessed or the date it became delinquent, whichever came later. Once the statute expires, your debt is cleared. A federal tax lien has a different statute.

How Do I Stop a Tax Lien Sale in Florida?

The most effective way to stop a tax lien sale is to pay the taxes that are owed, as well as late fees and interest. By the time a property is up for auction, there has likely been a tax lien for some time. Properties are seized through tax levies to cover debt, which may then be put up for auction.

Does an IRS Tax Lien Ever Expire?

Yes, a federal tax lien expires. The statute of limitations on IRS tax liens is 10 years. After that time, the lien is removed and the debt is cleared. Unfortunately, it’s likely that, before the lien expires, the IRS will take more significant steps, such as tax levies or wage garnishment, to pay off the debt owed. This results in significant financial hardship for many people.

Let TaxSmith, LLC, Help

If you need help determining your options for removing a tax lien, contact TaxSmith, LLC, today.



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