How to File State Actions to Cancel IRS Notices of Liens & Levies
- 1). File a lawsuit against the IRS in your local civil court to challenge the validity of the locality of the filing of the tax lien. As with other court actions there are regulations that outline where a tax lien may be filed against you. If the IRS files in the wrong locality then the tax lien is invalid.
- 2). File a lawsuit in civil court to challenge the procedures used. The United States tax code strictly regulates the collection procedures an agent may use to recover back taxes owed to the IRS. Skipping any part of the procedure may invalidate the tax lien.
- 3). File a lawsuit to challenge the statute of limitations. The tax code allows the Internal Revenue Service to pursue tax debts for a period of ten years. Beyond this date the agent must prove extreme circumstances in order to obtain an extension.
- 4). File a lawsuit to request a reversal based on a negative credit impact. Provide proof that a negative credit rating will inhibit your ability to pay the tax debt.
- 5). Apply with the court for a reversal of the lien. Explain that this reversal will allow you to sell a piece of property and pay the tax debt in full.
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