IRS Collection Lien: How to negotiate reduced payment? Need payoff amount advice
Hey everyone, I'm dealing with a collection lien on my account and I'm trying to negotiate a reduced payment. Has anyone gone through this process before? I'm not even sure what the exact payoff amount is. Any advice on how to approach this when I finally get through to the IRS?
22 comments
Emma Wilson
I've been there before. Here's what worked for me: 1. Get all your docs ready - IRS notices, proof of financial hardship, etc. 2. Be prepared to explain why you need a reduced payment 3. Have a realistic amount in mind that you can actually pay 4. Be polite but firm when talking to them 5. Ask about next steps if they agree to negotiate Most importantly, when you call, ask for a detailed breakdown of your lien balance. That'll give you a clear picture of what you're dealing with. Good luck!
0 coins
Malik Davis
This is solid advice! 👍 I'd add: keep a log of all your calls and who you spoke to. The IRS can be a maze sometimes.
0 coins
6M
Isabella Santos
Man, I wish I had this list when I was dealing with my lien. Took me forever to figure out the right approach. 🤦♂️
0 coins
6M
Javier Mendoza
Thanks for this! Quick question - how much of a reduction were you able to negotiate? Just trying to get an idea of what's realistic.
0 coins
6M
Emma Wilson
It really depends on your situation, but I managed to get about 30% off. Don't go in with a specific number in mind tho, be flexible and see what they offer first.
0 coins
5M
Write a comment...
Ravi Gupta
Ugh, the IRS is such a pain to deal with. I've been trying to get through to them for weeks. Anyone know a trick to actually speak to a human?
0 coins
GalacticGuru
I found a method that actually works! There's this site called claimyr.com that has a calling tool. It dials through the phone menu, stays on hold, and then forwards the call to you when a live agent picks up. It costs $20, but it saved me hours of frustration. Here's a video about it: https://youtu.be/Jc9x-gysK0
0 coins
6M
Freya Pedersen
$20 to talk to the IRS? Sounds like a scam to me. 🤨
0 coins
6M
GalacticGuru
I thought so too at first, but it's legit. Saved me a whole day of being on hold. Worth every penny imo.
0 coins
6M
Omar Fawaz
How does it work exactly? Do they give you a specific time to be ready for the call?
0 coins
5M
GalacticGuru
Yeah, you schedule a time window. When they get an agent, they call you. You have to be ready, but it beats sitting by the phone all day.
0 coins
5M
Write a comment...
Chloe Anderson
Pro tip: if you can prove financial hardship, you might be able to get the lien released. It's called a Collection Due Process hearing. Look it up!
0 coins
Write a comment...
Diego Vargas
Am I the only 1 who thinks its ridiculous that we have to jump through all these hoops just to talk to the freaking IRS? 🤬 The system is broken af
0 coins
Anastasia Fedorov
Preach! 🙌 It's like they make it difficult on purpose.
0 coins
6M
StarStrider
Ikr? Other countries have way simpler tax systems. We're living in the stone age here 💀
0 coins
6M
Write a comment...
Sean Doyle
Whatever you do, DON'T ignore the lien. I did that and it only made things worse. Intrest kept piling up and my credit score took a nosedive. Deal with it asap!
0 coins
Javier Mendoza
Oof, thanks for the warning. Did you manage to sort it out eventually?
0 coins
6M
Sean Doyle
Yeah, but it took way longer and cost me more than if I'd just dealt with it right away. Learn from my mistake, folks!
0 coins
6M
Write a comment...
Zara Rashid
Has anyone tried using a tax advocate service? I've heard they can sometimes help negotiate with the IRS on your behalf.
0 coins
Luca Romano
I used one last year. They were helpful but kinda expensive. Might be worth it if your case is complicated tho.
0 coins
6M
Nia Jackson
The IRS actually has a free Taxpayer Advocate Service. They can help if you're facing financial hardship. Worth checking out before paying for a private service.
0 coins
6M
Write a comment...
Mateo Hernandez
Just a heads up, even if you negotiate a lower payoff amount, it might still show up on your credit report. Make sure to ask about how it'll affect your credit score during the negotiation.
0 coins
Write a comment...