Updated October 2025
The tax lien removal process enables you to get an IRS lien removed from your assets and potentially withdrawn from the public record. There are several ways to get a tax lien removed – depending on your situation, you may need to pay the balance in full, set up a payment agreement, or apply for a special exemption.
This guide outlines the different ways you can get rid of a federal tax lien in straightforward steps.
Key Takeaways:
- Lien removal may refer to releases, withdrawals, subordination, or discharge.
- The IRS will release a tax lien after full payment or an approved resolution.
- Withdrawal removes the tax lien from the public record and is possible under certain circumstances.
- You may also be able to discharge the lien from specific assets or convince the IRS to subordinate the lien.
- The IRS will also release and withdraw a lien if it was filed in error.
How to Remove a Tax Lien from the IRS
Tax lien removal can happen in several ways, depending on your circumstances. The IRS will remove a tax lien if it was issued in error, you pay your tax balance in full, or the debt is satisfied through another arrangement, such as an offer in compromise, which lets you pay off the tax debt for less than the full amount owed.
Take a look at the different ways to get rid of an IRS tax lien.
Release After Payment in Full
Releasing a tax lien means you no longer owe the tax, as it was paid in full or resolved. If you pay the debt owed in full, the lien is released. Once the tax debt is paid in full, the IRS will file a Certificate of Release, though the Notice of Federal Tax Lien filed in public record will continue to exist unless the IRS withdraws the lien. We’ll explain that in just a moment.
The IRS can release a tax lien in other situations, such as if:
- You settle your debt through an offer in compromise. An offer in compromise (OIC) enables you to settle your debt for less than you owe, usually by making a lump sum payment within five months of the date accepted or by electing to pay off the settlement within 24 months.
- The statute of limitations expires. If the Collection Statute Expiration Date arrives, the IRS cannot enforce the tax lien. This is typically 10 years after you file your return or the IRS assesses the taxes owed.
Lien Withdrawal: When and How It Applies
The second strategy to remove a tax lien is to withdraw the federal lien. The withdrawal action removes the lien from the public record.
The IRS may withdraw the lien if it deems that it would be in the best interests of both the taxpayer and the government to do so. If you pay your taxes owed, you can request that the IRS withdraw the record of the tax lien through the use of IRS Form 12277, Application for Withdrawal of Filed Form 668(y), Notice of Federal Tax Lien.
If you have yet to pay the debt in full, the IRS may still withdraw the lien in certain circumstances, such as:
- The filing of the lien was premature or deemed improper, such as due to an error.
- The taxpayer entered into an installment agreement with terms that state the lien must be withdrawn. Typically, that means you owe less than $25,000, set up payments over 5 years or less, and make up to three monthly payments.
- Removal of the lien would aid in the collection of taxes, such as if the lien is limiting the taxpayer’s ability to earn a living.
Can you get a lien withdrawn through the Fresh Start program?
IRS Fresh Start is not a program you apply to – rather, the Fresh Start Initiative is a series of policy updates the IRS made in 2011, and one of those updates was to withdraw tax liens if taxpayers set up qualifying payment plans.
Discharge and Subordination: Special Removal Options
The IRS will also sometimes remove a lien from certain property, a process called lien discharge, or allow other creditors to move ahead of the IRS, a process known as subordination.
An IRS tax lien discharge removes the lien from a specific piece of property. It then lets you transfer the property free of the lien. To apply, you must complete Form 14135 for an IRS Certificate of Discharge.
An IRS subordination allows other creditors to move ahead of the IRS. This makes it easier for you to obtain a mortgage or a loan against your property. Subordination does not remove the tax lien but gives creditors the ability to issue liens against the property that supersede the IRS’s claims. If you want to refinance a loan and use the funds to pay back the IRS, this strategy works as well.
How to Request IRS Tax Lien Removal
If you paid your debt, you may want the IRS not just to release the lien but also withdraw it from your public record. To do that, you will need to submit Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien. You must submit the request in writing and comply with all filing and payment requirements.
IRS Forms and Where to Start
Now that you know the steps of how to get rid of a federal tax lien, consider the appropriate IRS tax relief forms:
- Form 12277 For Withdrawal – To request a withdrawal of the federal tax lien, complete IRS Form 12277, Application for Withdrawal of Filed Form 668(y), Notice of Federal Tax Lien. This form enables you to remove the lien from public view, and typically means you have paid the debt off in full or entered into a plan to do so.
- Form 14135 for Discharge – Complete IRS Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien, to request the IRS to discharge the tax lien. This allows you to sell the property or transfer it without the tax lien hindering that process.
- Form 14134 for Subordination – Complete IRS Form 14134, Application for Certificate of Subordination of Federal Tax Lien, to request subordination, often completed to allow a creditor to move ahead of the IRS on the tax lien, for refinancing a debt.
You can find these forms on the IRS website. To learn how to remove a tax lien yourself, each of these forms offers a set of instructions that must be followed closely. Mistakes can delay the process, and to be on the safe side, you may want to work with a tax attorney.
How Long Does It Take to Remove a Lien?
Once you pay the tax debt in full or otherwise reach a resolution, the IRS is legally required to release the lien within 30 days. Delays may occur due to omissions, mistakes on the required forms, or delivery mistakes.
Have Tax Lien Questions? Call Tax Attorneys at Wiggam Law
If the IRS has placed a lien on your property, we can help. The experienced attorneys at Wiggam Law can evaluate your situation, recommend a course of action, and assist in negotiating with the IRS. Contact metro Atlanta’s top tax attorneys by clicking here or giving us a call at (404) 233-9800.
FAQs About How to Get Rid of Federal Tax Liens
Here are some of the most commonly asked questions about tax liens and how to get rid of them.
What Is an IRS Tax Lien?
A tax lien is a legal claim to your assets because you have unpaid taxes. Tax liens arise as soon as you owe a debt to the IRS, but they only become part of the public record once the IRS issues a Notice of Federal Tax Lien at the local courthouse in the county where you live or work. The lien attaches to any of the assets you own in the county in which the lien is filed, and any property acquired while the lien is in effect.
What is the difference between a lien and a levy?
While a lien is a claim to your property to secure payment, meaning any proceeds from a sale would first go to pay off your tax debt, a levy is an actual legal seizure of your assets to satisfy debt. With a levy, the IRS can seize your bank accounts, real estate (even your home in some situations), and any other assets or garnish your wages in order to fulfill your tax debt.
Before levying your property, the IRS generally sends three or four demands for payment, which, if unanswered, result in the agency sending its Final Notice of Intent to Levy. The agency will then send you a third-party notice alerting you that it may be contacting third parties about asset seizure, such as your bank to seize accounts or your employer to garnish wages.
How does a lien affect you?
In addition to attaching to all your assets, a lien can affect your creditworthiness. The IRS does not notify the three major credit bureaus of a lien, nor do any of the bureaus include tax liens on credit reports. Lenders, however, often still search public records for tax liens. A lien against your property could affect your ability to qualify for a new credit card or secure a loan.
