Releasing A Tax Lien - Roni Deutch

Releasing A Tax Lien

Releasing A Tax Lien

The Internal Revenue Service (IRS) will issue a Release of the Notice of Federal Tax Lien:

  • Within 30 days after a taxpayer satisfy their tax liabilities (including interest and other additions) by paying the debt or by having it adjusted, or
  • Within 30 days after the IRS accepts a bond submitted by the taxpayer, guaranteeing payment of the debt.

In addition, taxpayers must pay all fees that a state or other jurisdiction charges to file and release the IRS tax lien. These fees will be added to the amount owed. Usually 10 years after a tax is assessed, a lien releases automatically if the IRS has not filed it again. If the IRS knowingly or negligently does not release a Notice of Federal Tax Lien when it should be released, the taxpayer may sue the federal government for damages.