When the IRS files a tax lien on your house, it feels like everything stops for a moment. You look at your home the same way, but now you know something is locked against it, and that one action suddenly shapes what you can sell, refinance, or even borrow. And honestly, that feeling is very real because a lien sits on your home until you resolve the tax issue behind it.

Most people reach this point with the same questions in their minds. How do I get this removed? How fast can I fix it? And what is the safest way to do it without making a wrong move? The IRS does offer real ways to lift a lien, but each one works differently, and that’s where things usually feel unclear.

So instead of guessing your next step, read along to get through the legal methods that actually help you answer the question you have in your head, “How to remove a tax lien on property?” quickly.

What Is an IRS Tax Lien?

An IRS tax lien is a situation wherein the government of the United States, through the IRS, puts a legal hold on your assets due to your debt in the form of unpaid federal taxes. It does not arise from unfiled returns alone; the IRS must first assess the tax and send you a bill. 

To put it simply, if you do not pay the amount you owe (after the IRS has sent you the bill and you fail to pay in time), then the IRS issues the lien release process, a public “Notice of Federal Tax Lien” filing.

This lien means the government has a legal right to your property, real estate, bank accounts, vehicles, or any assets until the tax debt is resolved. 

How Does It Affect Your Property?

When an IRS tax lien is filed against you, it can affect your property and financial life in several real and serious ways. Here’s how:

• It attaches to all your assets, not just one. That includes real estate, personal property, financial assets, and any future asset you acquire while the lien is active. 
• It makes it difficult to sell or refinance property because lenders and buyers see the lien and often treat it as a red flag.
• It can hinder your ability to get credit or loans, because even if credit bureaus may not list liens now, the lien remains a public record, and creditors or title companies can find it.
• It limits business or personal financial flexibility; if your business or personal property is under a lien, operating, borrowing, or selling becomes complicated. 

So when an IRS tax lien hits, it doesn’t just mean you owe more money; it affects your ability to use or move your own property freely.

Differences Between a Federal Tax Lien (IRS) and State or Local Tax Liens

While tax liens serve a similar purpose, they do not work the same way at every level of government. The table below compares federal tax liens issued by the IRS with liens filed by state or local authorities.

Even though “tax lien” sounds like a single term, there are important differences between a federal tax lien (by the IRS) and tax liens issued by state or local authorities. Below is a side-by-side overview.

5 Legal Ways to Remove an IRS Tax Lien on Property

An IRS tax lien on your property does not imply that you are forever stuck with it. The IRS has a few well-defined ways to get rid of or release a lien, and each of them has its own particular route. Thus, instead of speculating about the procedure.

Here is a simple classification of the 5 major ways to answer how to remove a tax lien on property and how they really happen in practice.

1. Lien Release after Paying the Full Balance

When the full tax debt is paid, the lien no longer has a reason to exist, so the IRS releases it. This is the most direct method and, in simple terms, the cleanest way to clear the lien completely.

Here is how this works in practice:

• You pay the entire balance, including tax, interest, and penalties.
• The IRS processes your payment and updates your account.
• They issue a formal lien release, usually within about 30 days.
• The lien is removed from your property and from public records.

2. Lien Withdrawal (Form 12277)

The public notice of the lien is removed when the lien is withdrawn. This is significant because the public notice is the one that becomes visible on credit reports, title searches, and when lenders or buyers go through your records. Thus, the withdrawal of the lien can greatly impact the situation even if some balance still exists.

Here is when and how this usually works:

• You request a withdrawal using Form 12277 or a written request.
• The IRS considers it when the lien was filed too early, filed by mistake, or when you meet their tax lien withdrawal requirements while paying through a plan.
• If they approve the request, the public record of the lien is removed.
• Your property becomes easier to sell, refinance, or transfer because the lien no longer appears in public searches.

3. Discharge of Property (Form 14135)

A discharge does not clear the lien from everything you own. Instead, it removes the lien from one specific property. This is usually used when you need to sell or refinance that property, and the lien is standing in the way.

Here is how a discharge typically works:

• You apply for a discharge of that particular property using Form 14135.
• The IRS reviews the request and the numbers tied to the property and the tax debt.
• If they approve it, the lien no longer attaches to that property.
• You can then move ahead with the sale or refinance because the title on that property is now free of the lien.

4. Lien Subordination (Form 14134)

Subordination keeps the lien in place but changes who gets paid first. In simple terms, the IRS agrees to let another lender move ahead of them in priority. This does not remove the federal tax lien fast by itself, but it often opens the door for you to fix the tax debt in a practical way.

Here is how subordination usually plays out:

• You request subordination using Form 14134 and explain the loan or refinance you are seeking.
• The IRS reviews whether allowing another lender to come first will help the tax debt get paid.
• If they approve it, the new lender gets priority over the IRS lien.
• You are then able to complete the loan or refinance and can use those funds to pay the IRS, which later leads to a full lien release once the balance is cleared.

5. Lien Release After an Accepted Offer in Compromise

An Offer in Compromise (OIC) is when the IRS agrees to settle your tax debt for a lower amount based on your financial situation. Once that agreement is in place and you complete all the required payments, the lien is no longer needed and is removed.

Here is what this looks like step by step:

• You apply for an OIC, and the IRS reviews your income, assets, and ability to pay.
• If they accept the offer, they set a reduced amount you need to pay.
• You make the agreed payments until the offer terms are fully satisfied.
• After that, the IRS treats the debt as resolved and releases the lien in the same way they do after a normal payoff.

Now that we know how to remove a tax lien on property, let’s move to the documents we need for each method we read above. 

What Documents and Information Are Needed to Remove a Tax Lien?

Though removal of tax liens by the IRS is permissible, the necessary documents differ according to the method employed. Rather than speculating about IRS document requests, we’ve provided a full list of documents for every legal option available, especially helpful if you need federal tax lien removal help. Thus, you can be sure of the exact preparations that need to be done from the very beginning.

For a Full Lien Release (after paying the balance)

To release a lien after full payment, the IRS usually needs:

• Proof of full payment (recent IRS account transcript or payment confirmation).
• Your personal information (name, address, and Social Security Number (SSN)/Employer Identification Number (EIN)).
• Any previous lien notices related to the debt (Form 668(Y)).

For a Lien Withdrawal (Form 12277)

If applying for a withdrawal of the lien, the IRS usually requests: 

• Form 12277 (Request for Withdrawal of a Notice of Federal Tax Lien). 
• A duplicate of the lien (Federal Tax Lien Notice; Form 668(Y)). 
• Withdrawal reason (made too early, made by mistake, or under payment-plan rules). 
• Details of the payment agreement, if applying under the direct-debit installment plan. 
• Documentation backing your request (for instance, papers showing the lien was filed wrongly or too soon).

For a Discharge of Property (Form 14135)

To clear the lien on one particular property, the IRS requires the tax lien discharge rules and the documentation related to that property and the tax obligation. Among these are:

• Form 14135 (Application for Certificate of Discharge).
• Legal description of the property.
• Current property appraisal or value.
• Sales agreement, closing statement, or housing and urban development settlement statement (HUD-1) (if in the process of selling).
• Mortgage payoff statement(s).
• Accompanying financial documents indicating the manner in which the proceeds from the sale or refinancing will be utilized.
• Copy of the recorded lien (Form 668(Y)).

For Lien Subordination (Form 14134)

If you want the IRS to allow another lender to take priority, you’ll need:

• Form 14134 (Application for Certificate of Subordination).
• Loan approval letter or refinance estimate from the lender.
• Property valuation or appraisal.
• Settlement statement or draft closing disclosure (if available).
• Details showing why the subordination benefits the IRS collection.
• Copy of the recorded lien notice.

For Lien Release After an Accepted Offer in Compromise

If your lien will be removed after settling through an OIC, the IRS requires all standard OIC documents, such as:

• Form 656 (OIC).
• Form 433-A(OIC) or 433-B(OIC) (financial disclosure forms).
• Proof of income (pay stubs, profit/loss statements).
• Bank statements.
• Asset documents (titles, valuations, statements).
• Expense documentation (mortgage, rent, utilities, insurance, etc.).
• Proof that the full settlement amount has been paid.

How to Check the Status of Your IRS Tax Lien Removal Request?

Once you submit a lien-removal request, you’ll want to know whether the IRS has received it, reviewed it, or completed it. The IRS has a few clear ways to check your status, and these are directly supported by IRS guidance.

• Call the IRS Centralized Lien Operation: The IRS provides a dedicated phone line for all lien-related questions: 1-800-913-6050. You can call this number to confirm:
  • Whether your request was received.
  • Whether it’s under review.
  • Or whether the lien has already been released or withdrawn.
• Look for the official IRS notice of release or withdrawal: When the IRS approves your request, they issue the proper certificate, such as a Certificate of Release of Federal Tax Lien (Form 668(Z)) or a Withdrawal of Filed Notice of Federal Tax Lien. These notices are mailed to you and also sent to the recording office if required by state law.
• Follow up if you paid your balance and did not receive the release within 30 days: The IRS must release a lien within 30 days after the tax debt is fully paid. If you do not receive the release, you are allowed to follow up with the IRS using the same lien unit number.

Get Trusted Tax Lien Representation with Verni Tax Law!

When you’re dealing with a tax lien, the hardest part is usually not the paperwork; it’s knowing whether each step you take is actually leading you closer to a clean resolution. The IRS offers various alternatives, each with its own rules, documentation, and timelines, which often confuse taxpayers. This is where having the right professional beside you changes the direction of the entire situation. 

As an attorney with CPA and MBA credentials, Anthony N. Verni doesn’t just understand the law; he understands the data, the IRS procedures, and how each lien-removal option applies in real scenarios.

If you’re ready to address your tax lien issue or need clarification on how to remove it from your property, feel free to reach out to him to discuss your situation directly.

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