What does this mean to me?

The IRS may consider granting a withdrawal of the NFTL in the following situations:

• The NFTL filing was premature or not in accordance with IRS procedures
• You entered into a (installment agreement) and the plan did not provide for the NFTL to be filed
• You entered into a Direct Debit Installment Agreement and have met certain conditions (see below)
• You have full paid your balance and the NFTL has been released you have met certain conditions (see below)
• Withdrawal of the NFTL will facilitate collection of the tax
• You, or the Taxpayer Advocate acting on your behalf, believes withdrawal is in your best interest and the best interest of the government

You will still be responsible for the balance owing on your account, if applicable, after the lien withdrawal.

If you are currently set up on a Direct Debit Installment Agreement, the IRS may consider withdrawal of the NFTL if the following criteria are met:

• You are a qualifying taxpayer (i.e., individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
• You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
• Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the timeframe for IRS to collect expires, whichever is earlier
• You are in full compliance with other filing and payment requirements
• You have made three consecutive direct debit payments
• You have not defaulted on your current, or any previous, Direct Debit Installment Agreement.

IRS may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release. General eligibility includes:

• Your tax liability has been satisfied and your lien has been released and:
• You are in compliance for the past three years in filing – all individual returns, business returns, and information returns
• You are current on your estimated tax payments and federal tax deposits, as applicable

To request IRS consider your request for withdraw of the NFTL, complete Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j).

If a determination is made to withdraw the NFTL, the IRS will file a Form 10916(c), Withdrawal of Filed Notice of Federal Tax Lien, in the recording office where the original NFTL was filed and provide you a copy of the document for your records.

If the request for withdrawal is denied, you will receive Letter 4711, Withdrawal Decision Letter.  The letter will include you appeal rights under the Collection Appeals Program (CAP).

See Lien Relief additional options to address the NFTL.