Lien versus levy
A lien secures the government's interest in your property. A levy actually takes it. The IRS files a Notice of Federal Tax Lien in the public records to alert creditors, and it must send you a notice that gives you a limited window to request a Collection Due Process hearing.
Your options
- Release. The IRS releases a lien within 30 days after the tax is paid in full or becomes legally unenforceable.
- Withdrawal. Removes the public notice as if it had never been filed. One common route: owe $25,000 or less and pay it through a direct debit installment agreement, among other requirements.
- Discharge. Removes the lien from a specific property, often so it can be sold.
- Subordination. Lets another creditor move ahead of the IRS, which can make a refinance possible.
Credit reports
The major credit bureaus generally no longer include tax liens on consumer credit reports, but liens remain in public records that lenders, title companies and buyers search.
Frequently asked questions
How do I get a federal tax lien removed?
Pay the tax in full (the IRS then releases the lien within 30 days), or qualify for a withdrawal, discharge or subordination depending on your goal.
Can I sell my house with an IRS lien?
Often yes. A certificate of discharge can remove the lien from the property, typically with the IRS receiving its share of the proceeds.
What's the difference between a lien release and a withdrawal?
A release ends the lien after the debt is resolved but the public record remains. A withdrawal removes the public notice entirely.
Will a payment plan remove the lien?
Not automatically, but some taxpayers who owe $25,000 or less and pay by direct debit installment agreement can request a lien withdrawal.