IRS Lien Withdrawal

The federal tax lien withdrawal is what removes the Notice of Federal Tax Lien and points out that the Internal Revenue Service won’t compete with other creditors for your property; if any. While the definition of withdrawal isn’t like getting money out of an ATM because you’ll withdraw the lien off of your property. There are eligibility requirements that every taxpayer must meet to remove the Notice of Federal Tax Lien on their property.

Generally, you’ll need to comply with filing a federal income tax return for the past three years and paid enough in estimated taxes for the current tax year. If you don’t know whether you’re eligible for IRS lien withdrawal, check out Form 12277 to figure out if you can benefit from this. The above-mentioned eligibility requirements are not stated on Form 12277, so you’ll need to account for those as well.

Form 12277 – IRS Tax Lien Removal Form

Form 12277, also known as the Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien is the IRS tax form that you’ll need to file to lift off any tax lien in the property that needs to be paid. 

It’s possible to file Form 12277 online, but it cannot be filed electronically as you would with tax forms that are attached to a federal income tax return. Form 12277 must be mailed to your regional IRS location with certified mail. You can file Form 12277 online fillable PDF and print out your paper copy. Just like you can file another form online, you can enter text, money amounts, and check the boxes where necessary, and print out a paper copy with the information you’ve provided. 

Start filling out Form 12277 – IRS Lien Withdrawal Form

IRS tax lien sale of property

The tax lien sale of the property refers to the sale of the property in a different way. The Internal Revenue Service won’t confiscate your property and sell it to another entity or person. Instead, there will be a tax lien on the property where you need to pay. The tax lien amount is usually the same as the owed tax, accrued interest, and penalties. 

When does the IRS file a tax lien?

There isn’t a specific period of time where the Internal Revenue Service files a tax lien. In most cases, if you owe $10,000 or more in federal taxes, the IRS will file a tax lien, however, it’s also filed for smaller debt amounts. It’s not the duration of the time tax remains unpaid but the amount that matters the most. 

Are tax liens public records?

Yes, tax liens are public records that appear on credit reports. The Internal Revenue Service files a tax lien with the County Clerk in the county where you live or operate your business and the lien is shown on your credit report. You can get a free credit report annually and see the tax lien on your report.