How to Remove a Texas State Sales Tax Lien

The state of Texas will file a lien on your credit report, property or business holdings for failure to pay sales tax.

According the State Comptroller of Texas, failure to pay your sales taxes (if you own a business) will result in penalties, fines and possibly liens. A tax lien is serious business. It can result in wage garnishment, bank account freezes and, in the worst cases, criminal charges. Removing a Texas tax lien requires you to simply pay off the delinquent taxes. This can be accomplished in a couple of ways.


Step 1

Review a copy of the lien. You first must make sure the lien is valid. Compare the total amount outstanding on the lien to your own tax records. If there are any discrepancies, contact the Comptroller's office in Texas or your local IRS office (see Resources for Texas offices).

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Step 2

Contact your Texas Comptroller field office to request a hardship if you cannot pay the entire lien. You should absolutely do this if the state has already begun collection activities (garnishments, asset seizure). Hardship requests are reviewed on a case-by-case basis. You must make a strong argument (backed up with supporting documentation) in order to be approved. See Resources to find the office near you.


Step 3

Request a payoff on the tax lien. You will pay an additional five percent penalty for any taxes less than 30 days overdue; a ten percent penalty for taxes less than 60 days overdue; and a 20 percent penalty on those over 60 days overdue. A payoff will include these penalties.


Step 4

Request an installment plan if you cannot pay the full amount. Again, these repayment plans are not guaranteed; each case is reviewed on its own merits. Generally, the Texas State Comptroller will not willfully place a business owner in a more precarious financial situation.


Step 5

Pay the lien in its entirety if at all possible. Once paid in full, the state will remove the lien from your property, credit report or business holdings. Make sure to get a copy of the Release of Lien for your records.



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