How to Release an IRS Lien
An Internal Revenue Service (IRS) lien is often filed against taxpayers who owe the IRS money for unpaid taxes or who have failed to pay their taxes. Tax liens can have serious consequences, such as preventing you from selling property and decreasing the likelihood of obtaining credit. However, there are several ways you can get a lien released against you.
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Instructions
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Pay or settle your IRS debt. You should pay the entire debt if you are able to do so. If not, contact the IRS immediately to arrange for payments. You can find contact information for the IRS at irs.gov, call 1-800-829-1040 or visit a local IRS office. The IRS may be willing to settle the debt, which would only require you to pay a portion of what you owe. You can make monthly payments or pay a lump sum. Once you have paid what you owe, the IRS will release the lien.
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Request a certificate of discharge. You will need to do this if you want to sell your property. If approved, this notice relinquishes the IRS' rights to the property. The IRS does not currently have an appropriate form for this notice. To obtain a certificate of discharge, you need to submit a typed letter to the IRS including a description of the property's location. You will also need to let the IRS know how and when you will be divested of your rights to the property, list any encumbrances and provide a copy of the tax lien, an itemized list of the closing costs or a closing statement and an appraisal if applicable. Finally, you will need to give the sale offer, time and place of public sale and your contact information. At the bottom of the letter, you will need to include the following quote to validate the letter, "Under penalties of perjury, I declare that I have examined this application, including any accompanying schedules, exhibits, affidavits and statements and to the best of my knowledge and belief it is true, correct and complete."
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Request a Notice of Federal Tax Lien Release. If you have paid or settled the lien, you should receive a Notice of Federal Tax Lien from the IRS, acknowledging that the lien is no longer valid. If you have not received this notice, you should contact the IRS by mail or visit an office to request a Notice of Federal Tax Lien Release. You will have to provide the IRS with the date of the request, name and address of the taxpayer, copy of the federal tax lien you want released, why you want the lien released and proof of payment, such as an IRS receipt or canceled check.
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