What Is a Tax Lien Subordination?

If it will aid in the collection of your tax debt or help you avoid a hardship, the IRS will allow a junior creditor to take a lien position ahead of it, for the purpose of a loan or loan refinance.  In the case of a Subordination, the IRS lien priority will simply be lowered, allowing the lender to move ahead securing the loan or refinance with the property named in the IRS certificate.

To request Subordination, use IRS Publication 784, Certificate of Subordination of Federal Tax Lien and Form 14134, Application for Certificate of Subordination of Federal Tax Lien.