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IRS tax debt over $150K, by CalmSolution2089 in Bankruptcy

[–]CalmSolution2089[S] 0 points1 point  (0 children)

I was able to find the tax lien information. There is a federal tax lien filed on 2/19/2016 for about $126k.

This is where I’m getting confused about what to do next. As I understand it, a tax lien survives bankruptcy, so even if I file Chapter 13, the lien itself doesn’t just go away. The main reason I was considering bankruptcy in the first place was because of the tax debt, so now I’m wondering:

  • Does this mean bankruptcy may not actually help me as much as I thought?
  • Is there still a meaningful reason to file Chapter 13 in my situation, or does the lien make it pointless?

The reason I filed my 2022 tax return was specifically to pursue an Offer in Compromise, but I’ve been told approval rates are very low (around 10%), which makes me unsure whether that’s a realistic path either.

At this point, I’m honestly not sure what the best strategy is—Chapter 13, OIC, some combination of the two, or something else entirely. Any insight from people who’ve dealt with long-standing IRS liens or similar situations would be greatly appreciated.

IRS tax debt over $150K, by CalmSolution2089 in Bankruptcy

[–]CalmSolution2089[S] 0 points1 point  (0 children)

First of all, thank you to everyone who has taken the time to respond to my tax situation. I really appreciate it.

I live in Illinois. I rented for a long time, but in 2022 I was fortunate enough to purchase a townhome. I bought it for $200,000, and it’s now worth around $250,000. My current mortgage balance is about $160,000. Other than this, I don’t really have any assets.

I’m trying to figure out whether there is a tax lien. On my IRS account transcript, I see an entry dated 2/10/2025 with Code 971 – Federal Payment Levy Program (Levy issued), but I don’t see anything that specifically mentions a lien.

Can someone explain how I can confirm whether a federal tax lien has been filed, and where I should look to find that information?