IRS Lien Release

An IRS lien release usually only happens when the taxes has been fully paid. However, there are other reasons for an IRS lien release. In order to obtain an IRS lien release, you need to know under which circumstances will the IRS lien release be possible. Also, how to obtain an IRS lien release.

Reasons for IRS lien releases

The IRS generally only release tax liens when the tax has been paid in full. But, an IRS lien release also happens when the taxes are legally uncollectible due to reasons such as lapse of time. Financial hardship can also be the reason for an IRS lien release. If a tax lien is more damaging in the collection process than helping then the IRS can release the lien. Below are reasons for an IRS lien release.

• the tax lien filing was premature or the tax lien filing violates any IRS tax laws
• the tax payer has agreed to an installment plan that does not allow tax lien
• by releasing the tax lien, the IRS can collect taxes
• The Taxpayer Advocate (TA) determines that an IRS lien release is the best option for the IRS and the tax payer.

How to obtain an IRS lien release?

In order to obtain an IRS lien release, you need to apply for a withdrawal of the tax lien in writing. You can use the IRS lien release form to apply. You can also write a letter of application for the IRS lien release to the appropriate office in the main local IRS office. The application for the IRS lien release must contain:

• your name, address, social security, contact information
• a copy of the tax lien that you want to obtain an IRS lien release on
• description of the real estate property
• reasons for the application for the IRS lien release
• supporting evidence of your claim why the IRS lien release is the best course of action
• names and addresses of anyone you want the IRS to notify of the IRS lien release
• any additional information relevant to the IRS lien release