Lien Withdrawal
Removes the public Notice of Federal Tax Lien from the record. You still owe the debt.
Full Definition
A withdrawal removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property. It does not erase what you owe — the IRS states you are still liable for the amount due. Eligibility is set out in Form 12277, Application for the Withdrawal of Filed Form 668(Y), under Internal Revenue Code section 6323(j). Two further withdrawal options came out of the 2011 Fresh Start initiative: one where the liability has been satisfied and the lien released, and one where a regular installment agreement has been entered into or converted to a Direct Debit installment agreement. The IRS lists conditions for each, including compliance with filing and payment requirements.
What to do next
Read Form 12277 on irs.gov for the eligibility conditions, and check the Direct Debit Installment Agreement entry if you are considering that route to a withdrawal.
What this page does not say
- The Direct Debit withdrawal option carries a balance ceiling and a payment-history condition. Those specifics are on the IRS lien page but are not restated here, because whether any of them apply to a given reader is an eligibility question this site does not answer.
Sources
- Understanding a federal tax lien — Internal Revenue Service, retrieved 2026-08-20
Last reviewed 2026-08-20 by Tax Resolution Clarity editorial.
Sourced to primary IRS materials and editorially reviewed. Not reviewed by a tax professional. Not tax advice.
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Where to go next
The IRS publishes the rules this page describes. Your own notice governs your dates.