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.


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

Tax Relief Frequently Asked Questions

What is one IRS Penalty?

Is there a penalty for not reporting my social security number?

What is the IRS penalty for not filing my tax return?

What is a frivolous return?

Is there a penalty for paying taxes late?

What is an example of a tax evasion case?

What is tax fraud?

What is tax evasion?

What is innocent spouse relief?

Can I see an example of innocent spouse relief?

When does innocent spouse relief not apply?

What form do I need to request innocent spouse relief?

How can I appeal an innocent spouse relief?

What are some innocent spouse relief rules?

Am I eligible for innocent spouse relief?

Where do I mail my IRS Form 8857?

What is corporate tax evasion?

What are some payroll taxes?

How about an actual case about corporate tax evasion?

What are some fringe benefits?

What is tax relief from a tax loss?

How can state taxes paid provide tax relief?

What is some small business tax relief?

What happens with unpaid payroll taxes?

What is an automatic IRS installment plan?

What are some documents needed for payment plans?

What is the drawback to an IRS installment plan?

What if I fall behind in my tax payments?

How can I make payments on my IRS payment plan?

What form do I need for requesting an IRS installment plan?

How do I request an IRS Payment plan?

What is an IRS tax installment agreement?

What are the guidelines for applying for an OIC?

Be weary of what?

Are there examples of OIC case studies?

How do I calculate my OIC offer?

When can I apply for an OIC?

What is an offer in compromise?

What are the procedures for an OIC?

What is an uncollectible account?

What are back property taxes?

Where can I get federal tax lien information?

What is a release of federal tax lien?

What is a notice of federal tax lien?

What property can be subject to a tax lien?

What is the tax lien process?

How do I perform a tax lien search?

What is a high risk taxpayer for tax liens?

What is a tax lien?

What assets can be levied?

How do I appeal an IRS levy?

What is a bank levy?

What starts the levy process?

What is a Notice of Levy?

How can I release a tax levy?

What is a state tax levy?

What is the difference between a tax lien and levy?

What is a wage levy?

What are some high risk trigger areas?

What are some IRS audit red flags?

Can I represent myself during an audit?

How long does the IRS have to audit me?

How do I prepare for my IRS audit?

How do I protect myself from an audit?

What is the IRS Taxpayer Bill of Rights?

What are some types of IRS audits?

How do I appeal a wage garnishment?

Can I see a wage garnishment case?

What is a wage garnishment?

What is a IRS warning?

What if I am self-employed?

How do I stop wage garnishment?

How do I release a wage garnishment?

Why do I have a wage garnishment?

What is my responsibility with wage garnishments?

How can an amended return give me tax debt help?

What is bankruptcy?

What is the debt calculator?

What is state tax debt?

What is a tax debt help mistake?

Who is a tax debt pro?

What is the Taxpayer Advocacy Services?

What is an uncollectible category?

What is a back tax form?

How do I file back taxes?

How do I pay back taxes?

What is the IRS statute of limitations?

What if I didn't receive a W-2?

What are the penalties for not filing my return?

What is a special situation regarding back taxes?

What is the IRS statute of limitations for back taxes?

What about the IRS & Substitute Tax Forms?

What is a penalty abatement?

What is an example of a penalty abatement?

What is a reasonable cause for penalty abatement?

How do I request a penalty abatement?

How do I request an interest abatement?

What is a penalty abatement request letter?

What about penalty abatements?

What if I rely on IRS incorrect advice?

Not finding the advice and tips you need on this Tax Relief Tip Site? Request a Tip Now!

Guru Spotlight
Lynne Christen