A federal tax lien is the government's legal claim on your property when you don't pay a tax debt. The IRS releases it within 30 days after you pay in full. A withdrawal removes the public notice. Discharge and subordination can help you sell or refinance.
Who it fits
People with a lien that blocks a loan, a home sale or a refinance.
- Who it fits
- Lien on property
- Cost
- Pay in full, or owe $25,000 or less on a direct debit plan to ask for withdrawal.
- IRS form
- Form 12277 (withdrawal), Publication 783 (discharge), Publication 784 (subordination)
What to know first
The IRS releases the lien within 30 days after you pay the tax debt in full.
A withdrawal removes the public Notice of Federal Tax Lien. You still owe the debt. Use Form 12277.
If you owe $25,000 or less, are on a direct debit plan, and have made 3 payments in a row, you may ask for withdrawal.
A discharge takes the lien off one piece of property, which can help you sell it. See Publication 783.
Subordination lets another lender go ahead of the IRS. That can make a loan or mortgage easier. See Publication 784.
A lien attaches to all your property, including things you get later, and to business property.
Common questions
How do I get a lien payoff amount?
Call the IRS Centralized Lien Operation at 800-913-6050. It can verify a lien, give a payoff amount or release a lien.
When does the IRS usually file a lien?
IRS staff manuals treat a balance of $10,000 or more as a case where a lien is usually filed. It can still file at lower amounts.
Source: IRS Internal Revenue Manual 5.12.2: Notice of lien determinations
Does a lien survive bankruptcy?
It can. The IRS says the debt, lien and notice may continue after a bankruptcy.
Results depend on your situation. Not every case qualifies.
