Can an IRS Tax Lien Be Removed? What Taxpayers Should Know

If the IRS has filed a tax lien, you may be wondering one thing: “Can this be removed?”

The answer is sometimes but it depends on your situation.

And there’s an important distinction many taxpayers don't realize: removing a tax lien, releasing a lien, and withdrawing a Notice of Federal Tax Lien are not necessarily the same thing.

So before you assume you're stuck with it, it's worth understanding what options may exist.

Paying the Tax Debt Can Release the Lien

Generally, the most straightforward way to resolve a federal tax lien is to pay the tax debt in full.

The IRS says it generally releases the lien within 30 days after the tax debt has been fully paid.

But what if you can't pay the entire balance?

That's where things can become more complicated.

A Tax Lien May Have Other Options

Depending on your circumstances, the IRS may have different forms of relief available.

Withdrawal

A withdrawal removes the publicly filed Notice of Federal Tax Lien.

But this is important:

A withdrawal does not erase the tax debt.

You may still owe the IRS even after a Notice of Federal Tax Lien has been withdrawn. The IRS has specific requirements for when a withdrawal may be available.

Discharge

A discharge can remove the lien from a specific piece of property.

For example, in certain circumstances, a taxpayer may be able to request a discharge when dealing with property affected by the lien. The requirements depend on the situation.

Subordination

Subordination doesn't remove the lien.

Instead, it can allow another creditor to move ahead of the IRS in certain circumstances, which may make financing or refinancing possible. Again, eligibility depends on the circumstances.

So, Can Your IRS Tax Lien Be Removed?

Maybe.

But the better question is:

What type of lien relief, if any, applies to your situation?

That depends on things such as:

• How much you owe

• Which tax years are involved

• Whether you've filed all required returns

• Whether you've entered into a payment arrangement

• Whether the lien has already been released

• What you're trying to accomplish with the property or debt

That's why copying someone else's solution from the internet isn't always the best approach.

Your situation matters.

Don't Confuse a Lien With a Levy

A lien and a levy are different.

A lien is the government's legal claim against your property.

A levy is an actual collection action that can take property or money to satisfy a tax debt.

If you're dealing with a levy or a notice threatening onethat's a different situation and may require more immediate attention.

Start by Getting Clear on Your Situation

If you have an IRS lien, don't start by assuming you need to pay everything immediately or that nothing can be done.

Start by understanding:

What does the IRS say I owe, what has already happened, and what is the IRS asking me to do next?

Once you know that, you can begin evaluating what options may be available.

Get Your IRS Tax Debt Self-Assessment Checklist

If you're dealing with IRS tax debt and aren't sure where you stand, my IRS Tax Debt Self-Assessment Checklist can help you organize the key information about your situation.

It gives you a place to start so you're not trying to piece everything together from memory.

[DOWNLOAD THE IRS TAX DEBT SELF-ASSESSMENT CHECKLIST]

You don't have to figure out the entire IRS process today.

Start with clarity. Then you can make a more informed decision about what comes next.