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Published:   |   Last Updated: October 13, 2022

Discharge of the Notice of Federal Tax Lien

A “discharge” removes the Notice of Federal Tax Lien (NFTL) from a specific property; however, the lien remains attached to all other property and future rights to property.

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Station Overview

Discharge of the NFTL is filed as public record.  Both the original NFTL and the discharge of the NFTL will show on public record, but the discharge acts to remove lien on a specific piece of property.  The NFTL remains in effect and continues to attach your property and future rights to property.

This notice or letter may include additional topics that have not yet been covered. Please check back frequently for updates.

 

What does this mean to me?

The NFTL has been filed against your assets and you would like the lien removed a specific property.  The IRS may consider granting a discharge of the NFTL to remove the lien from the property.

 

How did I get here?

There are various reasons you may be considering discharge of the NFTL, including when you are selling a property and the lien needs to be removed from the property so that enforcement action, such as seizure, does not affect the new owner.  See Publication 783, Instructions on how to apply for a Certificate of Discharge from Federal Tax Lien, for a full list of circumstances where IRS will consider discharge of the NFTL.

What are my next steps?

To request IRS consider discharge, complete Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien.

See Publication 783, Instructions on how to apply for a Certificate of Discharge from Federal Tax Lien, for more information on how to request discharge.

Once the IRS has reviewed your application for discharge of the NFTL, they will issue Letter 4025, Letter Advising of Action on Application for Discharge of Property from Federal Tax Lien, with its determination and any required action you need to take.  If the IRS denies your request, you will be advised of your right to appeal under the Collection Appeals Program  (CAP).

See Lien Relief for additional options to address the NFTL.

 

Where can I get additional help?

Understanding your notice or letter

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If you still need help

The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t working as it should. If you qualify for our assistance, which is always free, we will do everything possible to help you.

Visit www.taxpayeradvocate.irs.gov or call 1-877-777-4778.

Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, see the LITC page on the TAS website or Publication 4134, Low Income Taxpayer Clinic List.

Additional Contact Information

  • Centralized Lien Operation: To resolve basic and routine lien issues: verify a lien, request lien payoff amount, or release a lien, call 800-913-6050 or fax 855-753-8177.
  • Collection Advisory Group: For all complex lien issues, including discharge, subordination, subrogation or withdrawal; find contact information for your local advisory office in Publication 4235, Collection Advisory Group Addresses.
  • Under certain circumstances you may be able to appeal the filing of a Notice of Federal Tax Lien. For more information, see Publication 1660.
  • Centralized Insolvency Operation: If you are questioning whether your bankruptcy has changed your tax debt, call 800-973-0424.
  • Contact the IRS:

Related Notices and Letters

  • Form 668 (Y)(C), Notice of Federal Tax Lien
  • Letter 402, Conditional Commitment to Discharge Certain Property from Federal Tax Lien (Valueless)
  • Letter 403, Conditional Commitment to Discharge Certain Property from Federal Tax Lien (Value)
  • Letter 4025, Letter Advising of Action on Application for Discharge of Property from Federal Tax Lien
  • Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien
  • Publication 783, Instructions on how to apply for a Certificate of Discharge from Federal Tax Lien
  • Publication 785, Purchase Money Mortgages, Purchase Money Security Interests, and Subordination of the Federal Tax Lien

 

  • Lien Release
    • Letter 3640, Taxpayer Lien Payoff
    • Notice 48, Release of Federal Tax Lien
      • Publication 487, How to Prepare Application to Requesting the United States to Release Its Right to Redeem Property Secured by Federal Tax Lien