lien. This change is designed to reward consistent payment behavior and reduce the long-term impact of liens on credit and financial mobility. Taxpayers who fully satisfy their tax debt also have the option to request a lien withdrawal. The IRS generally honors these requests provided the taxpayer has filed all necessary returns, remains current with estimated payments, and meets other filing compliance requirements. This approach supports those who resolve their tax obligations and wish to clear any record of the lien from public view. The IRS continues to utilize levies as a primary enforcement tool in more serious collection cases. A levy allows the government to seize property such as wages, bank funds, and vehicles to recover unpaid taxes. While it is a more aggressive step than a lien, the IRS follows a thorough review process before initiating a levy and typically provides advance notice. In limited cases, the IRS may delay collection activity if a taxpayer is deemed temporarily unable to pay due to hardship. This “Currently Not Collectible” status allows other creditors to be paid first, although tax debt continues to accrue interest and penalties. The IRS may also offer installment plans or accept settlement offers based on ability to pay, providing struggling taxpayers with alternative paths to resolution.
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