How Do I Get My Federal Tax Lien Discharged?

By: Chris Sove, November, 2020

Note: Before reading about how a Federal Tax Lien is discharged, read about circumstances where withdrawal of the lien may be available. A discharged lien will still appear on your credit report, where a withdrawn lien will be wiped clean.

The IRS may discharge your Federal Tax Lien under certain circumstances, allowing you to sell the property free of the lien. There are five primary circumstances under which a Federal Tax Lien may be discharged:

  1. The value of property attached by the lien is at least double the liability of the federal tax lien plus other debt senior to the lien.
  2. The U.S. receives an amount not less than the value of the United States' interest.
  3. Interest of the United States in the property to be discharged has no value.
  4. Proceeds from property sale held in escrow subject to the liens and claims of the United States.
  5. Deposit made or bond furnished in an amount equal to the value of the United States' interest.

Of course, if you have additional questions or concerns, Contact Our Experts immediately.

Keep Reading! Our next article on Tax Controversies covers How To Get A Lien Withdrawn.

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