Federal Tax Lien Release
Protect Your Property From the IRS
How to remove a federal tax lien and protect your credit and business
Stop the IRS From Filing a Tax Lien
A tax lien is a legal claim a creditor places on a debtor’s property to secure payment of a debt. It gives the creditor the right to proceeds from the sale of that property if the debt remains unpaid.
The IRS files federal tax liens to protect the government’s interest when you owe back taxes. If your tax balance goes unresolved, the IRS can record a lien against your real estate, personal property, or financial assets.
Just like a levy, a lien can make dealing with tax debt even more stressful. Knowing how the lien process works and what options you have can help you take control and prevent long-term financial damage.
The IRS Tax Lien Process
The IRS may file a tax lien on your property only after sending a formal bill for unpaid taxes and a Demand for Payment. The first notice typically gives you 10 days to pay or make payment arrangements. If no action is taken within that time, the IRS can move forward and place a lien on your assets.
A lien becomes effective when the IRS files a Notice of Federal Tax Lien, a public record that alerts current and potential creditors that the government has a legal claim on your property. Federal tax liens can attach to personal property, real estate, and business assets, including accounts receivable.
Financially, this can have serious consequences. The Notice of Federal Tax Lien publicly informs creditors of the IRS’s claim, and the lien also applies to any future property you acquire after filing. The lien may appear on your credit report and negatively affect your score. Even after the lien is released, credit agencies may retain the record for years — often up to 15 years.
An active IRS lien can also limit your ability to sell assets such as your home, vehicle, or equipment. If you sell property subject to a lien, the IRS has a right to the proceeds until the tax debt is satisfied.
How to Remove a Federal Tax Lien
When the IRS releases a federal tax lien, it removes the government’s claim from your property, and your records are updated to show the release. However, the release itself does not automatically erase the lien from credit reports or county records; in some cases, the notation may remain visible for up to 10 years.
The IRS is required to release a lien within 30 days after you pay your tax debt in full, including all interest and penalties. A lien must also be released if the statute of limitations on IRS collections expires, generally 10 years from the date of assessment.
If you cannot pay in full, you may still qualify for relief. Through the IRS Fresh Start Program, taxpayers can request a lien release after entering into a Guaranteed or Streamlined Installment Agreement, provided certain conditions are met.
Even if you don’t yet qualify for a full release, you may still have options to resolve your tax debt and remove the lien. You could request a subordination to refinance or a withdrawal to remove the lien notice entirely. Working with an experienced tax professional can help you choose the best strategy to protect your assets and restore financial stability.
IRS Lien Withdrawal
An IRS Lien Withdrawal removes the public Notice of Federal Tax Lien, effectively erasing it from your record as though it was never filed. This action does not erase your underlying tax debt, but it does eliminate the lien’s impact on your credit and property records.
You can request a withdrawal after paying your tax balance in full, once the statute of limitations on the debt has expired, or if the lien was filed in error. In some situations, the IRS may grant a withdrawal before the debt is completely settled if you show consistent tax compliance—such as filing all returns on time and keeping up with required payments over the past three years.
The IRS may also consider a withdrawal when doing so helps you repay your debt faster—for example, by improving your ability to borrow or refinance. A successful lien withdrawal helps protect your credit, restore financial flexibility, and move forward with confidence.
IRS Lien Discharge
An IRS Lien Discharge permanently removes the federal tax lien from specific property, allowing you to sell or transfer ownership free of IRS claims. The lien remains in place for your other property, but the discharged asset is released from the government’s legal interest.
To qualify, you must show the discharge benefits the IRS. It may be approved if your remaining property is worth twice the tax debt and other liens, or if you make a payment or post a bond covering part of the balance. The IRS can also allow a discharge if the property has little value or if releasing it helps repay the debt more quickly.
Before requesting a discharge, you’ll need to consider key factors such as the fair market value of your property, existing debts or liens, and whether other creditors have claims ahead of the IRS. If approved, a discharge provides a path to sell assets and resolve your tax debt while maintaining compliance.
1. What is the difference between an IRS lien and a levy?
2. I owe back taxes. Will the IRS put a lien on my property?
3. How can I avoid an IRS lien?
4. I received notification from the IRS of a lien. Now what?
5. How will a federal tax lien affect my credit rating?
6. How can I get an IRS lien removed from my credit report?
Why Choose M7 for Your IRS Tax Lien Resolution
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