Tax Dictionary – Tax Lien Release
Tax laws direct the IRS to release a Federal tax lien within 30 days of when the liability is fully paid or becomes legally unenforceable or the IRS accepts a bond for payment of the liability. When all the liabilities shown on the Notice of Federal Tax Lien are satisfied, the IRS will issue a Certificate of Release of Federal Tax Lien for filing in the same location where the notice of lien was filed. If the IRS has not released the lien within 30 days, you can ask for a certificate of release.
More from H&R Block
When you pay off your full tax balance or when the IRS runs out of time to collect the balance, the IRS will automatically release your tax lien. This removes the lien from your property. If the lien isn’t automatically released, you can write to the IRS to request the release certificate.
Note: Lien release doesn’t remove the lien from public record or from your credit report. You’ll need to request a lien withdrawal to do that.
Do you have unfiled Form 941's, 940's, or 944's? Read the IRS definition of employment tax returns and get more insight from the experts at H&R Block.
There was not sufficient funds in your checking account to cover your monthly payment. Learn more about IRS notice CP166 from the tax experts at H&R Block.
Get the facts from H&R Block about IRS levies, which typically seize wages or funds from bank accounts to satisfy IRS tax debts.
Get the facts from H&R Block about the most common IRS penalties for filing and paying late and learn how to request penalty removal if you qualify.