How to Get an IRS Lien Released After Payment or Settlement
Paying the Debt Isn’t Enough—You May Need to Take Action
If the IRS filed a Notice of Federal Tax Lien against you and you’ve since paid off the tax debt or settled it with an Offer in Compromise, the lien doesn’t automatically disappear from public records or title reports.
To fully clear the lien and prevent it from showing up in real estate transactions or background checks, you may need to confirm the IRS processed the release—or request a formal withdrawal.
What Is a Lien Release?
A lien release confirms that the IRS no longer has a legal claim against your property. It’s typically issued as Form 668(Z) – Certificate of
Release of Federal Tax Lien.
This can happen when:
- You’ve paid the debt in full
- You’ve completed an Offer in Compromise
- The Collection Statute Expiration Date (CSED) has passed and the IRS did not refile the lien
Related: IRS Lien Filed Against You? What It Means and What to Do Next
Does the IRS Automatically Release a Lien?
The IRS is required to release a lien within 30 days of full payment, but in practice, this may require follow-up to ensure it’s filed and recorded correctly.
If you settled through an Offer in Compromise, you must complete all payment terms and may need to confirm final processing before the IRS issues the release.
Related: IRS Offer in Compromise – How to Settle for Less Than You Owe
Step-by-Step: How to Remove the Lien
- Confirm payment is processed
Use IRS Tax Transcripts or contact the IRS. - Request or retrieve Form 668(Z)
The IRS typically mails this once the lien is released, but you can also request a copy. - File the release with your county recorder
This step ensures the lien is cleared from title reports and public records. - Request a lien withdrawal (Form 12277)
If the lien was properly released but still shows in databases, use Form 12277 to remove it from the record entirely.
What If the IRS Fails to Release It?
If the IRS does not release the lien after you've satisfied the debt and you’ve made proper requests, you may be entitled to damages under IRC §7432—but only after exhausting administrative remedies.
We Help Orange County Taxpayers Get Liens Removed the Right Way
At Boulanger CPA and Consulting PC, we:
- Confirm IRS lien releases
- File county documentation
- Submit lien withdrawal requests
- Clear title for real estate or lending
📞 Call (657) 218-5700 or request a strategy call at www.orangecounty.cpa
FAQ: IRS Lien Release
Q: Is paying the IRS enough to remove the lien from my records?
A: Not always. The IRS releases the lien, but you must often
file the release locally or request a
withdrawal for full removal.
Q: Is release the same as withdrawal?
A: No. Release extinguishes the lien. Withdrawal
removes the public notice entirely.
Q: Can I get a copy of the release?
A: Yes—request
Form 668(Z) if not received.
Q: What if the IRS doesn’t release it on time?
A: You may have legal recourse under IRC §7432 if the IRS fails to act after full payment.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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