What Is A Tax Lien Withdrawal?An IRS tax lien is the government's legal right to your property when you owe taxes. A Tax Lien Withdrawal removes the public tax lien record, and helps assure other creditors that the IRS will not compete for your property and other assets.
When Can I Request A Tax Lien Withdrawal?The IRS will generally grant a Withdrawal after you full pay your tax debt, and a Lien Release is issued if the following additional criteria are met:
- You must request a Withdrawal in writing (use IRS Form 12277);
- You have fully satisfied all tax liabilities listed on the Notice of Federal Tax Lien;
- The IRS has issued a Certificate of Release of Federal Tax Lien;
- You are currently in compliance with all tax responsibilities.
You may also request a Withdrawal through the IRS Fresh Start program after entering into a Direct Debit Installment Agreement. The criteria to request a Withdrawal through the IRS Fresh Start program are:
- You owe 1040 Income Tax;
- You owe $25,000 or less;
- Your Direct Debit Installment Agreement must satisfy your total tax debt within 60 months or before the Collection Statute Expiration Date (CSED), whichever is earlier;
- You must be in full compliance with other tax responsibilities;
- You must make 3 consecutive Direct Debit Installment Agreement payments;
- You may not have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien;
- You may not have defaulted on your current, or any previous, Direct Debit Installment Agreement.
How Do I Request A Withdrawal?You may request an IRS Tax Lien Withdrawal using Form 12277. Remember, you must qualify for the Withdrawal for the IRS to seriously consider your request.