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Discharge/Release of Tax Liens
Obtain discharge or release of federal tax liens from your property.
Talk To A Real Tax Attorney
One honest conversation. You'll hang up knowing exactly what the IRS can — and can't — do to you, and how we'll stop them.
Call (877) 829-5267Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
The Truth About Discharge/Release of Tax Liens — And What To Do Right Now
A federal tax lien attaches to every piece of property you own — and to anything you acquire while the lien is in place. It can stop a home sale, kill a refinance, freeze a business sale, and devastate your credit. But a lien is not permanent, and you have four distinct ways to get out from under it: discharge, release, subordination, and withdrawal.
McCauley Law Offices handles all four. We move quickly to keep real estate transactions on track, restore credit, and clear title — often within the timelines lenders and title companies require.
Discharge vs. Release vs. Subordination vs. Withdrawal
These four terms sound similar but do very different things:
- Discharge (Form 14135): Removes the lien from one specific property. Used when you need to sell or refinance. The lien stays attached to your other assets.
- Release (Form 668(Z)): Eliminates the lien entirely — typically issued after the debt is paid in full, the 10-year collection statute expires, or a bond is posted. The IRS is required to release within 30 days of full payment.
- Subordination (Form 14134): Keeps the lien in place but lets another creditor (usually a mortgage lender) take priority. Used when refinancing would put cash toward the IRS debt.
- Withdrawal (Form 12277): Removes the public Notice of Federal Tax Lien as if it had never been filed — the most powerful credit-repair option. Available under Fresh Start when you owe $25,000 or less with a direct-debit installment agreement.
When a Discharge Is the Right Move
The IRS will grant a discharge under IRC § 6325(b) when one of the following is true:
- § 6325(b)(1): The remaining property the IRS still has a lien against is worth at least double the tax owed plus any senior encumbrances
- § 6325(b)(2)(A): The IRS receives the value of its interest in the discharged property from the sale proceeds
- § 6325(b)(2)(B): The IRS determines its interest in the discharged property has no value (it's underwater)
- § 6325(b)(3): The proceeds of sale are held in escrow subject to the IRS's lien
We identify which provision fits your facts, run the math the IRS will run, and prepare the application package the IRS expects — with property appraisals, payoff statements, title reports, and HUD-1 estimates already assembled.
Getting a Lien Withdrawn for Credit Repair
Even after a lien is released or paid, the public Notice of Federal Tax Lien can keep damaging your credit for years. A withdrawal under IRC § 6323(j) tells the world the lien was never properly filed. The IRS will withdraw a lien when:
- The lien was filed prematurely or not in accordance with IRS procedures
- You enter a direct-debit installment agreement and owe $25,000 or less (Fresh Start)
- Withdrawal will facilitate collection of the tax
- Withdrawal is in the best interest of you and the government
After we secure withdrawal, we provide the documentation you need to push the three credit bureaus to remove the derogatory mark.
Why This Work Belongs With a Tax Attorney
Title companies, escrow officers, and even some real estate attorneys don't know the IRS discharge process. Files routinely sit on the wrong IRS desk for weeks. We know which Advisory Group office to call, what package the IRS examiner wants, and how to escalate when a closing is in jeopardy. The wrong form sent to the wrong office can cost you the deal.
People Just Like You Have Sat In This Exact Chair
They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.
Closing in 9 Days With $120,000 Lien
A King of Prussia homeowner came to us with a signed sale agreement, a $120,000 federal tax lien, and a closing date 9 days away. We secured a § 6325(b)(2)(A) discharge in 7 business days — the proceeds were applied to the IRS debt and the sale closed on time.
Refinance Blocked by Lien Priority
A Cherry Hill business owner needed to refinance her home to consolidate debt, but a $68,000 IRS lien sat ahead of the new mortgage. We obtained a lien subordination, the refinance funded, and she used part of the proceeds to enter a partial-pay installment agreement.
Credit Restoration After Payoff
A Chadds Ford client had paid his $42,000 tax debt two years earlier, but the lien still showed on his credit report and was blocking a small business loan. We filed Form 12277, obtained a withdrawal certificate, and walked him through removing the entry from all three credit bureaus.
That Letter In Your Hand? Here's What It Really Means.
The IRS writes notices in code on purpose. If any of these landed in your mailbox, discharge/release of tax liens is exactly how we fight back — and the clock is already ticking.
This is a final notice before the IRS seizes your assets. They intend to levy (take) your state tax refund and may seize other assets.
Deadline: 30 days
This is the absolute final warning. The IRS will begin seizing your wages, bank accounts, and property within 30 days.
Deadline: 30 days
Every Day You Wait, The IRS Wins A Little More.
Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.
Exactly How We Take This Off Your Shoulders
The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.
- 1
Inventory liens & affected property
We pull IRS transcripts and county recorder records to map every active lien, the amount owed, and which properties are encumbered.
- 2
Pick the right remedy
Discharge, release, subordination, or withdrawal — each fits a different goal (sell, refinance, pay off, repair credit). We pick the one that actually solves your problem.
- 3
Build the application package
Form 14135, 14134, 12277, or 668(Z) — plus appraisals, payoff statements, title reports, HUD-1 estimates, and a cover letter framing the legal basis.
- 4
Push the IRS Advisory Group
We file with the correct Advisory office, follow up weekly, and escalate when deadlines slip — especially when a closing date is on the line.
- 5
Close the loop on credit & title
Once the certificate issues, we make sure it's recorded in every relevant county and provide you with the documentation needed to clean up your credit reports.
Trusted by Thousands of Taxpayers
Real results from real clients
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
Robert M.
Sandra L.
Michael T.
Jennifer K.
David R.
Maria G.
Thomas W.
Patricia H.
James C.
"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."
Robert M.
Philadelphia, PA
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The Questions Keeping You Up At Night — Answered
Other Ways We Shut The IRS Down
Offer in Compromise
Settle your tax debt for less than what you owe through IRS settlement programs.
Installment Agreement
Set up manageable monthly payment plans to pay off your tax debt over time.
Currently Not Collectible
Prove financial hardship to temporarily halt IRS collection activity.
Penalty Abatement
Remove or reduce IRS penalties through first-time abatement or reasonable cause.
One Phone Call. Or Another Sleepless Night.
Stop Letting The IRS Own Your Mornings.
You already know what happens if you do nothing. Pick up the phone for a free, confidential conversation with a real tax attorney — 30+ years inside the IRS playbook — and finally start fighting back.
Call (877) 829-5267 NowPrimary Sources & Authority
We cite the underlying IRS publications and statutes so you can verify everything on this page.