The lien redemption plan provides for equal monthly installments for a period up to how many years?

• A. 2 years
• B. 3 years
• C. 4 years
• D. 5 years

Answer: (B)

A lien redemption plan lets you satisfy a tax lien by paying the debt in equal monthly installments instead of a lump sum. The key limit of this plan is how long you have to finish those payments. It is set up to be completed in up to three years, so the installments are spread over a maximum of three years. This keeps the payoff manageable for the taxpayer while allowing the lien to be released once the payments are completed. Shorter terms, like two years, are possible but do not represent the maximum; longer terms, such as four or five years, would go beyond what the plan permits.