What is the difference between a lien discharge and a lien release?

A lien release is issued when the entire tax debt is paid — it removes the lien from all of your property. A lien discharge removes the lien from only one specific piece of property, allowing a sale or refinance of that property, while the lien continues to attach to all your other assets. A discharge does not mean the debt is paid.

When would I need a tax lien discharge?

A discharge is most commonly needed when you want to sell or refinance a specific property — such as your home or a piece of real estate — that has a federal tax lien attached to it. Buyers and lenders typically require a clear title, which means the lien must be discharged from that property before the transaction can close. The IRS may grant the discharge if the sale proceeds will be used to pay the tax debt or if the property value exceeds the lien amount.

How do I apply for a federal tax lien discharge?

To apply for a Certificate of Discharge from a federal tax lien, use IRS Publication 783, Instructions on How to Apply for a Certificate of Discharge. The application is filed with your local IRS Collection Advisory Group. Contact the Centralized Lien Operation at 800-913-6050 or consult Publication 4235 for your local advisory office address.

What is a federal tax lien discharge?