to discharge the lien to allow for the completion of the sale. Taxpayers or lenders also can ask a federal tax lien be made secondary to the lending institution’s lien to allow for the refinancing or restructuring of a mortgage. The IRS currently is working to speed requests for discharge or mortgage restructuring to assist taxpayers. To support taxpayers facing financial challenges, the IRS continues to refine its policies regarding federal tax liens. While the agency has updated certain thresholds for specific small- value properties in line with inflation, it has not implemented a broad increase in the overall dollar amount at which liens are filed. Instead, the IRS remains focused on case-by-case evaluation and relief mechanisms to ease the burden on compliant taxpayers while still ensuring collection of unpaid taxes. A notable example of taxpayer-focused policy is the IRS’s treatment of Direct Debit Installment Agreements (DDIAs). When taxpayers commit to making regular payments through direct debit and meet key eligibility criteria, including remaining balances under a certain amount and a record of timely payments, the IRS may agree to withdraw an active federal tax 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
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