ReleasevsWithdrawal
What it does
Ends the lien after the debt is paidRemoves the public Notice of Federal Tax Lien
Do you still owe?
No, it is paidYou may still owe on a plan
How to get it
Pay in full. Released within 30 days.Form 12277
The short answer
A release ends the lien. A withdrawal pulls the public notice.
Release vs Withdrawal at a glance
| Release | Withdrawal | |
|---|---|---|
| What it does | Ends the lien after the debt is paid | Removes the public Notice of Federal Tax Lien |
| Do you still owe? | No, it is paid | You may still owe on a plan |
| How to get it | Pay in full. Released within 30 days. | Form 12277 |
| Fresh Start paths | n/a | After release with 3 clean years, or on a direct debit plan at $25,000 or less |
What to know
A withdrawal tells creditors the IRS is not competing for your property.
For the direct debit path, you need 3 payments in a row and no past direct debit defaults.
For complex cases, contact the IRS Collection Advisory Group.
Release may fit if
- You paid in full
- You need proof the lien is gone
Withdrawal may fit if
- You are paying on a direct debit plan
- You want the public record cleared
Results depend on your situation. Not every case qualifies.