A “subordination” does not remove the Notice of Federal Tax Lien (NFTL) but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage
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Subordination of the Notice of Federal Tax Lien (NFTL) is filed as public record. Both the original NFTL and the subordination will show on public record, but the subordination shows that the IRS has allowed other creditor(s) to move ahead of the IRS in lien priority. The NFTL still remains in effect when a subordination is issued.
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You have an unpaid tax balance and an NFTL has been recorded as public record, putting other creditors on notice that you owe the IRS. You would like the IRS to consider subordinating the NFTL as a means of addressing your tax debt. For example, you may be considering refinancing a home mortgage to take equity from the house to pay down your tax debt, or refinancing to lower your monthly mortgage payments in order to pay more towards a monthly payment plan with the IRS.
Additional information can be found in Publication 784, Instructions on how to apply for a Certificate of Subordination of Federal Tax Lien; and Publication 785, Purchase Money Mortgages, Purchase Money Security Interests, and Subordination of the Federal Tax Lien.
To request subordination, complete Form 14134, Application for Certificate of Subordination of Federal Tax Lien. See Publication 784 and Publication 785 for more information.
Once the IRS has reviewed your application for subordination of the NFTL, you will receive Letter 4027, Advising of Action on Application for Subordination of 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 Appeal Program (CAP).
See Lien Relief additional options to address the NFTL.
Understanding your notice or letter
For more specifics on your notice, visit Understanding your IRS Notice or Letter on IRS.gov or Understanding a Federal Tax Lien.
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.
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Lien Subordination
