How to Get a Tax Lien or Tax Levy Released
How to Get a Tax Lien or Tax Levy Released
If you already have a tax lien or a tax levy, you’re past the point of needing a definition; you need to know what happens next. That’s what this page covers. For a full explanation of what a lien, a levy, and wage garnishment are and how they differ, see our guide: Tax Lien vs. Tax Levy vs. Wage Garnishment.
Getting a Federal Tax Lien Released
A Notice of Federal Tax Lien doesn’t go away on its own. You generally have five paths:
- Pay the liability in full. The IRS must release the lien within 30 days of full payment.
- Set up a Direct Debit Installment Agreement. This can also position you to request a lien withdrawal (see below).
- Request a discharge of the lien from one specific property using IRS Form 14135, useful if you need to sell or refinance that property specifically.
- Request subordination, which lets another creditor move ahead of the IRS, often used to make refinancing possible.
- Show that the lien is hindering your ability to pay the tax debt itself.
Getting a Lien Withdrawn (Not Just Released)
A release means the lien no longer applies; a withdrawal removes the public notice itself. You can typically request a withdrawal once you’ve:
- Paid your liability in full, or entered a Direct Debit Installment Agreement, and
- Filed all required returns for the last three years, and
- Stayed current on your estimated tax deposits and payments
Appealing a Tax Lien
If you disagree with a lien, you have 30 days from the date the IRS notifies you to appeal. Common grounds include:
- The IRS made an error in the assessment
- You had already settled the liability before the lien was filed
- You believe a spouse or ex-spouse is solely responsible for the debt
Your attorney can also raise the appeal through a Collection Due Process hearing if you received a Final Notice of Intent to Levy alongside the lien notice.
Getting a Tax Levy Released
A levy can be released, though the underlying liability still needs to be addressed. The IRS will generally release a levy if:
- You pay the amount owed in full
- The collection statute expired before the levy was issued
- The levy is preventing you from paying your basic living expenses (economic hardship)
- You enter into a payment plan that’s incompatible with the levy remaining active
- The levy is actively hindering your ability to pay the tax debt it’s meant to satisfy
Once a levy on wages or a bank account is released, confirm with your employer or bank directly that they’ve received and processed the release; it isn’t always instant on their end.
What Next?
Quick, decisive action matters once a lien or levy is already in place, but it’s not always obvious what the right move is, and a wrong one can cost you. If you’ve received a lien or levy notice, talk to an experienced tax attorney before you respond on your own.