Glossary

Tax Lien Withdrawal

A tax lien withdrawal occurs when the IRS removes the Notice of Federal Tax Lien from public records. This action effectively cancels the lien, allowing the taxpayer to regain control over their property and financial standing. A lien withdrawal can help improve a taxpayer’s credit and ability to sell or refinance property.

Taxpayers can request a lien withdrawal under specific circumstances, such as:

Entering into a Direct Debit Installment Agreement.
Paying the full tax debt and demonstrating compliance with tax obligations.
Proving that the lien was filed in error or that its withdrawal is in the best interest of both the taxpayer and the government.

Unlike a lien release, which indicates the debt has been satisfied, a lien withdrawal removes the public record of the lien, making it easier for taxpayers to manage their finances and avoid the negative effects on credit.

Recommendation

CP32A Notice

IRS CP32A notifies taxpayers that their refund check was returned due to an undeliverable address and provides steps to correct the issue.

Earned Income Credit (EIC)

The Earned Income Credit (EIC) is a refundable tax credit for low- and moderate-income earners, helping reduce their tax liability and providing a possible refund.

Letter 2275C: Installment Agreement Reinstatement Approved

IRS Letter 2275C notifies taxpayers that their request to reinstate an installment agreement has been approved and outlines the updated terms.

Abatement

IRS Penalty Abatement reduces or eliminates penalties imposed for late filing or late payment, provided the taxpayer shows reasonable cause.

CP297A Notice: Notice of Levy on Social Security Benefits

The IRS CP297A Notice informs taxpayers that the IRS will levy a portion of their Social Security benefits to collect unpaid taxes unless action is taken.

Tax Evasion

Tax evasion is the illegal act of deliberately avoiding paying taxes owed to the IRS, resulting in severe penalties, fines, and potential imprisonment.

CP210 Notice

IRS CP210 informs taxpayers that adjustments have been made to their account, which may result in a balance due, credit, or refund.

CP75 Notice

IRS CP75 is sent to request additional documentation to verify Earned Income Credit (EIC) claims or other credits on a tax return.

CP10 Notice: Changes to Your Tax Return

The IRS CP10 Notice informs taxpayers of corrections made to their tax return that may impact their refund or balance owed.

Letter 3489: Offer in Compromise Reconsideration Request

IRS Letter 3489 notifies taxpayers that their request for reconsideration of a denied offer in compromise is under review, and outlines the process moving forward.