What Is IRS Notice 1450? How To Respond
CS
Summary:
IRS Notice 1450 is a document with instructions on how to request a Certificate of Release from a tax lien. Tax liens are placed when a taxpayer fails to pay off their tax debt. Once the debt is paid off in full, the tax lien is removed and the taxpayer receives the Certificate of Release.
One consequence of failing to pay off a tax debt is that a tax lien could be placed on your property. The federal tax lien ensures that taxpayers pay off their debt. Until you pay off your tax debt, a tax lien acts as the government’s legal claim to your personal property. A tax lien essentially prevents the owner from selling their property before paying their debts.
While this is a scary and overwhelming situation, the good news is that it doesn’t have to be permanent. If you have a tax lien on your property, the IRS will send you a Notice 1450 to let you know what to do next. Let’s take a closer look at IRS Notice 1450, what it is, how to read it, and how to respond should you ever receive one.
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What is IRS Notice 1450?
If you receive a federal tax lien on your property, expect to also receive a Notice 1450 from the IRS. Although it may sound intimidating, this notice is actually meant to help you. Once your debt is paid off, you should receive a Certificate of Release. IRS Notice 1450 instructs you on how to receive that certificate.
IRS Notice 1450 tells you how to take the following steps:
- Request a payoff for your overdue tax balance
- Obtain a copy of your Certificate of Release
- Check the status of your Certificate of Release
The document will also inform you of what steps you should take if the IRS has not released the lien 30 days after the date when it was paid off.
What should you do if you get an IRS Notice 1450?
If you receive an IRS Notice 1450, make sure to keep it in a safe place. Do not lose it or throw it away. When you’re ready, follow the instructions outlined in the document. You may only need to follow the first steps, as the last only applies if you haven’t received your Certificate of Release after 30 days.
Pro Tip
IRS Notice 1450 only applies in the case of a federal tax lien, not tax levies. A tax levy is when the IRS takes and sells a piece of property to pay off your balance in part or in full. Tax levies are usually only carried out when the taxpayer owns luxury items and has a large amount of debt.
Tax liens are much more common than tax levies. However, if you don’t pay off a lien, the IRS may levy your property, so make sure to pay off your debt as soon as possible.
Request the payoff amount
After receiving an IRS Notice 1450, the first step you should take is to request the payoff amount of the lien. An IRS Notice 1450 states you can do this in the following ways:
- Contact the IRS office that your account is assigned to (this should be stated in the notice). You can receive the balance information over the phone.
- Contact the Centralized Lien Operation Department at 1-800-913-6050. This number usually has a shorter wait time than the general IRS number.
- Go to your online IRS account, which you can access through the IRS website. This is probably the easiest way to obtain your balance. Be prepared to verify your identity to access the information.
Obtain a copy of your Certificate of Release
A copy of your Certificate of Release should be sent to you once your debt has been paid off. You can check the status of the certificate by contacting the IRS department by mail, phone, or fax. Be sure to contact the IRS if you haven’t received a copy of your certificate 30 days after the debt is paid off.
What to do if you don’t receive a certificate after 30 days
If it’s been at least 30 days since you’ve paid off your tax debt and your lien has not yet been released, contact the Collective Advisory Group. You will have to mail them the following information:
- The date of your request
- Your name and address
- Your telephone number
- The best time to call you
- A copy of the Notice of Federal Tax Lien you would like released
- An explanation of why you need the lien released
- Proof of payment
If you need the Certificate of Release immediately, you should contact your local IRS office. You will need to show them proof that your lien has been paid off.
When does a federal tax lien start?
The IRS will inform you of an unpaid tax debt before placing a lien on your property. They will send you a bill known as a Notice and Demand for Payment. If you do not pay the bill in time, the IRS will put a federal tax lien on your property, which is when the lien will start.
The Notice of Federal Tax Lien is to alert creditors that the government currently has a legal right to the property. Once you pay off the debt, the lien will be removed.
How to get an IRS tax lien removed
As soon as your debt is paid off in full, your tax lien should be removed. The easiest way to get your federal tax lien released is by paying off your remaining tax debt in full, either in one lump sum or across multiple payments over time. In some cases, you may also be able to appeal a tax lien.
Debt payment options
Now that you know paying off your tax debt in full is the best way to get rid of a tax lien, how exactly do you pay off that debt? Thankfully, you have a couple of payment options available:
- You can fully pay off your tax liability via a direct debit installment agreement, with an online payment using a debit or credit card, or by mailing a check.
- If you cannot pay off your tax debt all at once, you can arrange monthly installment payments to the IRS.
Pro Tip
In some cases, the IRS may accept an Offer in Compromise. An Offer in Compromise is when the IRS agrees to settle a tax debt for less than the full amount. A tax professional can help you determine if you qualify for one and assist you in setting it up.
FAQs
Why am I getting a Notice 1450 from the IRS?
IRS Notice 1450 is a document containing instructions on how to get a Certificate of Release from a federal tax lien. If you receive this notice, it means you have tax debt that has not been paid off, so a lien has been placed on your property.
Should I submit an IRS Notice 1450?
You do not have to submit a Notice 1450. The notice is for your reference only and is yours to keep.
How long does it take the IRS to seize property?
The IRS can seize your property after the debt you owe has gone unpaid for 30 days after notice.
Key Takeaways
- A federal tax lien is when the government places a claim on your property due to unpaid tax debt.
- If a tax lien is placed on your property, you will receive a IRS Notice 1450, which outlines the steps you need to take to get your tax lien removed.
- You can have a tax lien removed by paying off your outstanding tax debt in full. You can pay off this debt all at once or in monthly installments.
- Once your debt is paid off in full, a Certificate of Release will be issued immediately and your tax lien will be removed.
- If your tax lien isn’t removed 30 days after you’ve paid off your debt, you’ll need to contact the IRS to resolve the issue.
Tackle your tax debts with help
Need help getting out of tax debt to remove the federal tax lien from your property? Without the proper tools, it can sometimes feels impossible to get out from under your tax debts.
Rather than staying stuck, you can find help through a tax relief company. A tax relief company will communicate with the IRS on your behalf to see if you can pay a smaller sum for your total tax debts. Read our guide on the IRS Fresh Start program to see if you qualify for tax debt relief, and use our comparison tool to find the best tax relief services for you.
CS
Camilla has a background in journalism and business communications. She specializes in writing complex information in understandable ways. She has written on a variety of topics including money, science, personal finance, politics, and more. Her work has been published in the HuffPost, KSL.com, Deseret News, and more.
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