How did I get here?

A NFTL was filed and attaches to your assets and future rights to assets.  The NFTL release shows creditors that the IRS debt is no longer owed.

There are various reasons you may want information on lien release, including:

• You have an NFTL filed against you
• You have full paid you tax balance
• The time the IRS can collect the tax, also known as the Collection Statute Expiration Date (CSED), has passed, or is approaching
• You have an accepted Offer in Compromise and you have completed the terms of your agreement
• You have secured a bond and the IRS has accepted the bond guaranteeing payment of the full amount owed

What are my next steps?

The IRS releases the NFTL within 30 days after you have paid your tax debt in full, including penalties and interest.  If you are able to full pay the balance owed, see Payments for the various ways you can pay your IRS debt.  If you can’t pay the full amount, you can view payment options that might work for your situation, and contact the IRS to set up a payment plan or discuss other ways to address your balance.  If you enter a payment plan, the NFTL will not be released until the entire balance is paid.

If you have already full paid your account, the IRS is required to issue a lien release within 30 days from the date that full payment posts to your account.  If you pay by check, the payment will post within 30 days from when the payment clears the bank.  The IRS will record Form 668(Z), Certificate of Release of Federal Tax Lien, as public record.  You will receive a copy along with Notice 48, Instructions for the Certificate of Release of Federal Tax Lien, once your NFTL has been released after full payment.

When you have a balance owing and the CSED period has expired, the lien will self-release because the debt can no longer legally be collected.  The Form 688(Y)(c) that is filed as public record has the CSED information listed on it, as well as self-release information in the event of the CSED expiring. The original Form 688(Y)(c) acts as the lien release document.  There are situations that cause the CSED to be extended and these extensions do not extend the NFTL itself.  The IRS can refile the NFTL to secure the government’s interest, when necessary.

When an Offer in Compromise (OIC) is accepted and the terms of the agreement are met, the lien will be released.  The IRS will record Form 668(Z), Certificate of Release of Federal Tax Lien, as public record.  You will receive a copy along with Notice 48, Instructions for the Certificate of Release of Federal Tax Lien.  If you have questions about the status of your release, contact the Offer Specialist assigned to your case.

If you dispute the balance owed for which the lien has been filed, see Taxpayer Disagrees with Assessment for more information.

For other options to address the NFTL, see Lien Relief.