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 lien filed against you and you’ve since paid off the tax debt or settled it through settling debt 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, background checks, or when selling your house with an IRS lien, 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.
Failure to follow up could also leave you vulnerable to future enforcement actions like IRS wage garnishment enforcement or even responding to an IRS notice of intent to levy if the IRS believes you still owe.
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.
In some cases, state-level enforcement may also come into play, such as California FTB lien and levy actions, which require careful coordination with both federal and state authorities.
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
We help you protect your financial future, eliminate tax lien barriers, and resolve lingering IRS issues. For more strategies and legal insights, explore more in Defend What’s Yours.
Frequently Asked Questions
When will the IRS release a lien?
The IRS must release a lien within 30 days after the debt is paid in full, settled through an Offer in Compromise, or deemed unenforceable by law.
How do I confirm a lien has been released?
The IRS issues a Certificate of Release of Federal Tax Lien. You should also verify that the lien is removed from public records.
What if the IRS doesn’t release the lien?
If a lien remains after payment, you can request proof of release from the IRS. In rare cases, you may need to contact the county recorder’s office to update records.
How long does it take for a lien release to show?
The IRS generally processes lien releases within 30 days, but delays may occur. It may take additional time for public records to update.
Does an IRS lien release improve credit immediately?
A released lien helps, but because liens are public records, credit recovery may take time. You can provide creditors with the IRS release certificate as proof.
What if I settled my debt for less with an Offer in Compromise?
Once you successfully complete your Offer in Compromise, the IRS will release the lien. You should receive confirmation in writing.
Can I request a lien withdrawal instead of just a release?
Yes. A withdrawal removes the lien from public records entirely. It’s available in certain cases, such as after an installment agreement or OIC, or to help with refinancing.
Should I get help with a lien release request?
Yes. A tax professional can ensure proper documentation is submitted and help expedite lien release or withdrawal requests with the IRS.
📣 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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