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Published:   |   Last Updated: November 4, 2022

Release of Notice of Federal Tax Lien (Lien Release)

The Notice of Federal Tax Lien (NFTL) will “release” once you have paid your tax debt in full, when the IRS accepts a bond guaranteeing payment of the amount owed, or once the IRS is no longer legally able to collect the debt. The release will alert other creditors that the IRS debt is no longer due.

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The IRS will issue a Certificate of Release of the NFTL within 30 days of when:

  • The full amount of the tax debt, including penalties and interest, is paid
  • The IRS accepts a bond guaranteeing payment of the amount owed
  • The IRS determines that the liability is not owed, or the liability has been reduced to zero
  • The IRS is no longer legally able to collect the tax

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

What does this mean to me?

When the NFTL is released, it shows other creditors that you no longer owe the IRS.

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.

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 3640, Taxpayer Lien Payoff
  • Letter 3172, Notice of Federal Tax Lien Filing and Your Rights to a Hearing Under IRC 6320
  • Letter 3171, Notice of Federal Tax Lien Additional Filing (We filed an additional Notice of Federal Tax Lien against you)
  • Letter 3886, Special Condition Notice of Federal Tax Lien Filing – Taxpayer
  • Letter 3177, Special Condition Notice of Federal Tax Lien Filing – Third Party