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Federal Tax Lien Collection Actions in Detail (Part IV)

Federal Tax Lien Collection Actions in Detail (Part IV)

What are reasons the IRS will “release” a Federal Tax Lien?

A “release” of a Federal Tax Lien means that the IRS has cleared both the lien for your debt and the public Notice of Federal Tax Lien. The IRS does this by filing a Certificate of Release of Federal Tax Lien with the same state and local authorities with whom they filed your Notice of Federal Tax Lien. They will release your lien if:

· Your debt is fully paid,

· Payment of your debt is guaranteed by a bond, or

· You have met the payment terms of an Offer in Compromise which the IRS has accepted, or

· The period for collection has ended. (In this case, the release is automatic.)

For more information, see Publication 1450, Instructions on How to Request a Certificate of Release of Federal Tax Lien.

Next week: What are reasons the IRS will “withdraw” a Federal Tax Lien?

(IRS Publication 594 and IRS.gov) (TTT 02/25/2020)