Tax Lien Withdrawal

What is Tax Lien Withdrawal?

The IRS places a tax lien on property or assets when you fail to pay a tax debt. A tax lien withdrawal makes it easier to sell your property or assets if you have a federal tax lien placed on them. Furthermore, the lien withdrawal removes the Public Notice of Federal Tax Lien from the asset in question. In other words, the IRS is no longer in competition with other creditors. Moreover, you may be eligible for a Lien Withdrawal if you have entered into a direct debit installment agreement. Another method is to come to some sort of an agreement regarding your tax debt with the IRS. 

How Can I Become Eligible?

For starters, the IRS allows for two options:


  • OPTION 1: Lien has been paid off and released

According to the IRS, the criteria for this option is as follows:

  • OPTION 2: Direct debit installment agreement allows for the filing of a tax lien withdrawal

This option allows you to file for a withdrawal if you have entered into a direct debit installment agreement. Another option: your regular installment agreement was converted into a direct debit installment agreement. 


According to the IRS, you can use this option if you/your:

Other Options for Tax Lien Withdrawal

First of all, an application requesting a lien withdrawal is filed with the IRS.

To continue, here is a list of other criteria for eligibility besides the above options:

In addition to meeting the above criteria, you must provide documentation to support the claim. Moreover, you must list the financial institutions to be notified of the withdrawal of the tax lien. In conclusion, lien withdrawals can be very complicated. The best advice is to consult a tax professional to prevent any missteps. Visit our page explaining our tax problem resolution services for more information.

What Is A Direct Debit Installment Agreement?

The key to most eligibility requirements is the entering into a direct debit installment agreement. This true even if you still have a tax debt. A direct debit installment agreement is simple: installment payments are paid directly from your bank. You can simply set this up online through the IRS website.

Next Steps:

A public notice of a federal tax lien on your assets renders them undesirable to buyers and creditors. Applying for a tax lien withdrawal may be the best option if you are wanting to sell these assets.


It is best to consult a tax professional to determine if this is the best option for your situation. A tax professional can assist you with the filing of the withdrawal of tax lien. Call today to consult with a tax professional about your situation.

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