IRS Tax Lien Help & Subordination
Keep your property and financing moving
A federal tax lien is the government's legal claim against everything you own, including business receivables, and it can stall a sale, a refinance or a factoring line. Our Enrolled Agents work with the IRS on lien releases, withdrawals, discharges and subordinations. Our team brings more than 55 years of combined experience to these cases.
Enrolled Agents IRS-certified
All 50 states Nationwide
55+ years Team experience
What is a federal tax lien?
A federal tax lien is the government's legal claim against your property when a tax debt goes unpaid. It arises automatically once the IRS assesses the tax, sends a bill (Notice and Demand for Payment), and the balance isn't paid. The lien attaches to all your current and future property. For a business, that includes accounts receivable.
To establish its priority over other creditors, the IRS files a public Notice of Federal Tax Lien. Within five business days of the first filing, it sends you a Notice of Federal Tax Lien Filing and Your Right to a Hearing (Letter 3172). You have until the date on that notice to request a Collection Due Process hearing. Source: IRS, Understanding a Federal Tax Lien.
Lien vs. levy
A lien is a claim against your property; a levy actually takes it. A filed lien is public, so lenders, title companies and factoring companies see it, and it can stall financing or a sale even when nothing has been seized.
How do I get an IRS lien removed?
30 days
How long the IRS has to
release a lien after you pay in full
It depends on what you need:
• release ends the lien once the debt is paid in full, becomes legally unenforceable, or the IRS accepts a bond, and the IRS releases it within 30 days of payment;
• withdrawal removes the public Notice of Federal Tax Lien, for example after a qualifying installment agreement, though you still owe the tax;
• discharge removes the lien from a specific property, usually so it can be sold;
• subordination lets a lender or factoring company move ahead of the IRS on specific collateral; or
• a Collection Due Process hearing lets you challenge the lien filing and propose a payment plan or an offer.
Removing a lien doesn't erase the balance, and each option needs an application and IRS review. Source: IRS Publication 1450.
KEY TIMELINES IN A LIEN CASE
Three numbers to plan around
5 days
Filing notice sent
45 days
Apply before closing
30 days
Release after payment
IRS Pub. 783 & 784
The IRS sends a lien filing notice within five business days, and your hearing deadline is the date on that notice. For a sale or refinance, the IRS asks for discharge or subordination applications at least 45 days before the transaction. After full payment, it releases the lien within 30 days.
Liens, factoring and business financing
A lien attaches to accounts receivable, the collateral factoring companies and lenders rely on. Two certificates keep deals moving:
Subordination (Form 14134)
The IRS lets a named lender or factor move ahead of its lien on specific collateral, such as receivables. The lien stays in place. In our experience, the IRS generally expects an installment agreement in good standing before it subordinates for an operating business.
Discharge (Form 14135)
This removes the lien from one specific property so it can be sold or transferred, usually with some or all of the proceeds going to the IRS. The rest of your property stays subject to the lien. Apply at least 45 days before closing (see IRS Publication 783).
How we handle a lien case
1. Review and verify. With your authorization (IRS Form 2848), we pull your IRS transcripts and confirm balances, which liens have been filed and where, unfiled years, and collection statute dates.
2. Choose the right remedy. We match your goal to a release, withdrawal, discharge or subordination, prepare the application, and work it with the IRS and your lender, factor or title company.
3. Resolve the underlying debt. Most lien remedies depend on a resolution, so we set up the arrangement that fits your finances.
What to have ready: any lien notices or IRS letters (including Letter 3172), recent tax bills, details and the closing date of the sale, refinance or factoring agreement, and which tax years you have and haven't filed. States file tax liens too, with their own release and subordination rules, and we handle both IRS and state liens.
Which resolution fits your situation?
An installment agreement is often the starting point. It can support a lien withdrawal and is generally expected before a subordination.
If you qualify, an Offer in Compromise can settle the balance for less than the full amount, and the lien is released once the accepted offer is paid.
If penalties have inflated your balance, penalty abatement can reduce the total. If the IRS has already taken money from your bank account or wages, see our levy help.
IRS tax lien questions
Common questions about federal tax liens, withdrawals and subordinations.
Does paying off my balance remove the lien? Paying in full gets the lien released, and the IRS releases a lien within 30 days after the debt is paid. A release doesn't erase the public record that a notice was filed, but a withdrawal can remove that notice in some cases.
What's the difference between a lien release and a lien withdrawal? A release ends the lien itself, usually after full payment. A withdrawal removes the public Notice of Federal Tax Lien as if it had not been filed, but you still owe the tax. You request a withdrawal on IRS Form 12277.
Can I sell my house with an IRS tax lien? Usually, yes. A certificate of discharge (Form 14135) removes the lien from that property so the sale can close, often with proceeds going to the IRS. The IRS asks for the application at least 45 days before closing.
Can my business keep factoring with a federal tax lien? Often, yes. A certificate of subordination (Form 14134) lets your factoring company move ahead of the IRS on the receivables it funds. In our experience, the IRS generally expects an installment agreement in good standing first.
How long does a federal tax lien last? Until the debt is paid or the IRS can no longer legally collect it, which is generally 10 years after the tax is assessed. A lien can also survive bankruptcy, so a bankruptcy filing doesn't always end it.