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After the IRS has exhausted all attempts to collect your unpaid taxes, the enforced collection process begins. You have already received a Notice of Demand for Payment and have either not contacted the IRS or paid the Notice. You have been given 10 days to do either of these events.
Filing. It is at this point that the IRS will file the Notice of Federal Tax Lien in your county's public records. As mentioned in other sections, the Notice of Federal Tax Lien filing gives notice to all concerned parties that the IRS has a claim against any or all of your property. It gives the IRS priority over other creditors you may have.
IRS federal laws require them to notify you within five days of the filing date for your lien. You will receive this notice:
As with most IRS tax laws, there are certain conditions and limitations that apply to a Certificate of Discharge.
For more information on this process and Certificate, IRS Publication 783 will be useful to you. This Publication is titled ‘Instructions on How to Apply for a Certificate of Discharge of Property from the Federal Tax Lien.
Legalities. The IRS will withdraw your Notice of Federal Tax Lien when any of the following happen:
Contact. The IRS has a special unit set up to deal with tax liens. It is known as the Centralized Lien Unit. You can reach them at 1-800-913-6050 if you have questions regarding basic lien inquiries such as routine lien releases and lien payoff amounts.
Payoff. You can request a payoff amount for your federal tax lien. Simply call the Centralized Lien Unit at 1-800-913-6050 to receive an updated lien payoff amount. At this point an IRS employee will issue you a letter containing the current amount (payoff amount) that must be paid before your Notice of Federal Tax Lien is released.
Release. Your Notice of Federal Tax Lien will be released with you pay the entire amount in full.