Federal Tax Lien Release

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What is a release of federal tax lien?

Federal Tax Lien Release

The easiest way to have a federal tax lien released is by paying the IRS your unpaid tax bill amount. In fact, the IRS will not issue a “Certificate of Release of Federal Tax Lien” until you have paid all unpaid taxes, interest, penalties, and any applicable recording fees in full. Or, you can have your federal tax lien released if the IRS cannot legally collect the tax (as in the case of it being after the statute of limitations time period).

If you cannot pay your tax lien in a lump sum manner, you may want to consider selling your assets.

Filing a bond for the amount of unpaid federal taxes you owe will also release your federal tax lien.

When you have fully paid all your back taxes, the IRS will issue you a “Certificate of Release of Federal Tax Lien”. They are legally required to issue you this Certificate

in a timely manner. A timely manner is within 30 days of you having satisfied, or paid, the tax debt in full.

You also will be required to pay any state or other jurisdiction charges for releasing and filing the lien. Check with your local state for more details.

There is a special unit set up to deal specifically with federal tax liens. Specialized Lien Processing Unit is what it is known as in the IRS.

Payoff. To find out the total amount due on your federal tax lien, request a payoff computation from the IRS. This usually takes about 14 days to process.

You can call the IRS at 1-800-913-6050, or mail them.

When requesting a final balance due on your federal tax lien, you will need to provide the IRS with the following:

Your name, telephone number, and address

Your Social Security Number and or Employer Identification Number

The date you would like to the total to be computed through.

The IRS will mail you two copies of all payoff letters. One copy of the payoff letter must be returned with your payoff amount so the IRS can properly apply your payment to release your federal tax lien.

Forms:

IRS Publication 1450 – ‘Instructions on How to Request a Certificate of Release of Federal Tax Lien' will be useful to you.

  • Obtain the forms from the IRS website or by phone at 1-800-829-1040.
Mail. You can mail your request for the payoff statement or balance due figure to:

Internal Revenue Service
CCP – Lien Unit
P.O. Box 145595
Stop 8420G
Cincinnati, OH 45250-5595

When you sell some of your business or personal assets to satisfy an IRS tax lien, you need to convince the IRS that you are selling your assets at fair market value. This IRS will receive the sale proceeds, and need to know they are getting t

   

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