When Will the IRS Release My Tax Lien?
An IRS tax lien is a public document which gives the US government legal claim to your assets when you accrue a Federal tax debt. The sure fire way to get your tax lien released is to pay your tax debt in full. You may qualify for other options that loosen the grip of an IRS a tax lien.
- Certificate of Discharge of Federal Tax Lien (COD) – clears the tax lien from property allowing it to be sold. See IRS Publication 783 for more information.
- Subordination – the Service gives up its lien position to other creditors to allow a loan, mortgage or refinance to occur. See IRS Publication 784 for more information.
- Withdrawal – different from a Lien Release, a Withdrawal removes the public notice. Use IRS Form 12277 to request a Lien Withdrawal.
How Long Will It Take For The IRS To Release My Tax Lien?
Once you've satisfied your tax debt, the IRS will release the tax lien within 30 days. In some cases, you may request a quicker release of your Federal tax lien by coordinating payment with your local IRS office. You must satisfy your tax debt with certified funds to obtain a Lien Release the same day.
How Can I Avoid a Tax Lien?
Simply put, you must file and pay all taxes on time and in full. If you are not able to pay your taxes, however, it is always a good idea to file your tax returns timely to avoid unnecessary IRS penalties. If you do accrue a back tax liability, open all IRS correspondence and proactively seek a resolution to your debt through the payment options offered by the IRS. If you act quickly and qualify for certain IRS payment options
, you may be able to satisfy your tax debt over time, and avoid a tax lien altogether.