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How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option One    Part V

How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option One    Part V

A “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due. For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF) and the video Lien Notice Withdrawal.

Two additional Withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative.

Option One

One option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release. General eligibility includes:

Your tax liability has been satisfied and your lien has been released; and also:

  • You are in compliance for the past three years in filing – all individual returns, business returns, and information returns;
  • You are current on your estimated tax payments and federal tax deposits, as applicable.

Next week – How to request a withdrawal of a Federal Tax Lien – Option Two?

(IRS.gov) (TTT 01/08/19)