The Irs Collection Process Publication 594 (Page 5 of 8) in pdf

The IRS Collection Process Publication 594

Page 5

What to do if a Notice of Federal Tax Lien is filed against you

We may withdraw a Notice of Federal Tax Lien if:

You should pay the full amount you owe immediately. Keep in mind the

•

You’ve entered into an Installment Agreement to satisfy the tax

Notice of Federal Tax Lien only shows your assessed balance as of the

liability, unless the Agreement provides otherwise. For certain types of

date of the notice. It doesn’t show your payoff balance or include our

taxes, we’ll routinely withdraw a Notice of Federal Tax Lien if you’ve

charges for filing and releasing the lien. To find out the full amount you

entered into a direct debit installment agreement and meet certain

must pay to have the lien released, call 1-800-913-6050. If you have

other conditions,

questions, call the number on your lien notice or 1-800-829-1040 or

•

It will help you pay your taxes more quickly,

visit ,,id=108339,00.html.

•

We didn’t follow IRS procedures,

•

It was filed during a bankruptcy automatic stay period, or

How to appeal a Notice of Federal Tax Lien

•

It’s in your best interest (as determined by the Taxpayer Advocate) and

Within 5 business days of filing the Notice of Federal Tax Lien, we’ll

in the best interest of the government. For example, this could include

send you a Notice of Your Right to a Collection Due Process Hearing.

when your debt has been satisfied and you request a withdrawal.

You’ll have until the date shown on the notice to request a Collection

Due Process hearing with the Office of Appeals. Send your Collection

For more information, see Form 12277, Application for Withdrawal of

Due Process hearing request to the address on the notice. For more

Filed Notice of Federal Tax Lien.

information, see Form 12153, Request for a Collection Due Process or

How to apply for a “discharge” of a federal tax lien from property

Equivalent Hearing.

A “discharge” removes the lien from specific property. There are several

After your Collection Due Process hearing, the Office of Appeals will

circumstances under which the federal tax lien can be discharged.

issue a determination on whether the Notice of Federal Tax Lien should

For example, we may issue a Certificate of Discharge if you’re selling

remain filed, or whether it should be withdrawn, released, discharged, or

property and a Notice of Federal Tax Lien has been filed; you may be

subordinated. If you disagree with the determination, you have 30 days

able to remove or discharge the lien from that property through the

after it’s made to seek a review in the U.S. Tax Court.

sale. For more information on whether you qualify for a discharge, see

Publication 783, Instructions on How to Apply for a Certificate of

If you don’t file a hearing request within 30 days, you aren’t entitled

Discharge of Property from Federal Tax Lien. To watch an instructional

to a Collection Due Process hearing, but you may be entitled to an

video about Publication 783, visit

equivalent hearing. The request for an equivalent hearing; however,

doesn’t prohibit us from seizing and doesn’t suspend the 10-year period

How to make the federal tax lien secondary to other creditors

for collecting tax. In addition, you aren’t entitled to a judicial review of

(“subordination”)

the decision from the Equivalent Hearing.

A “subordination” is where a creditor is allowed to move ahead of the

In addition to any Collection Due Process rights you may have, you may

government’s priority position. For example, if you’re trying to refinance

also appeal a proposed or actual filing of a Notice of Federal Tax Lien

a mortgage on your home, but aren’t able to because the federal tax

under the Collection Appeals Program.

lien has priority over the new mortgage, you may request that we

subordinate our lien to the new mortgage. For more information on

Reasons we’ll “release” a federal tax lien

whether you qualify for a subordination, see Publication 784, How to

A “release” of a federal tax lien means that we have cleared both the

Prepare an Application for a Certificate of Subordination of Federal Tax

lien for your debt and the public Notice of Federal Tax Lien. We do this

Lien. To watch an instructional video about Publication 784, visit

by filing a Certificate of Release of Federal Tax Lien with the same state

and local authorities with whom we filed your Notice of Federal Tax Lien.

Appeal rights for withdrawal, discharge, or subordination

We’ll release your lien if:

If we deny your request for a withdrawal, discharge, or subordination,

•

Your debt is fully paid,

you may appeal under Collections Appeals Program.

•

Payment of your debt is guaranteed by a bond, or

•

The period for collection has ended. (In this case, the release

Levy: A seizure of property

is automatic.)

While a federal tax lien is a legal claim against your property, a levy is a

For more information, see Publication 1450, Instructions on How to

legal seizure that actually takes your property (such as your house or car)

Request a Certificate of Release of Federal Tax Lien.

or your rights to property (such as your income, bank account, or Social

Reasons we may “withdraw” a Notice of Federal Tax Lien

Security payments) to satisfy your tax debt.

A “withdrawal” removes the Notice of Federal Tax Lien from public

Keep in mind that we can’t seize your property if you have a current

record. The withdrawal tells other creditors that we’re abandoning our

or pending Installment Agreement, Offer in Compromise, or if we agree

lien priority. This doesn’t mean that the federal tax lien is released, or

that you’re unable to pay due to economic hardship, meaning seizing

that you’re no longer liable for the amount due.

your property would result in your inability to meet basic, reasonable

living expenses.

The Irs Collection Process Publication 594 Page 5

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