Fresh Start Notice of Federal Tax Liens
Increase in the Notice of Federal Tax Lien filing threshold
The Fresh Start changes increase the IRS Notice of Federal Tax Lien filing threshold from $5,000 to $10,000. Notices of Federal Tax Liens may still be filed on amounts less than $10,000 when circumstances warrant. The IRS will not retroactively apply the new $10,000 lien notice filing threshold and automatically withdraw a previously filed lien.
Requesting a lien withdrawal after the lien has been released
The IRS may now issue a withdrawal of a filed Notice of Federal Tax Lien after the lien has been released. If you wish to have the Notice of Federal Tax Lien withdrawn, you must request the withdrawal in writing. Please use Form 12277, Application for Withdrawal (PDF). In item 11, Reason for requesting withdrawal, check the last box, “The taxpayer, or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the taxpayer and the government.”
Generally, eligibility requirements are:
- Your tax liability has been satisfied and your lien has been released
- You are in compliance for the past three years in filing:
- All individual and business returns
- All information returns
- You are current on your estimated tax payments and federal tax deposits, as applicable.
Notice of Federal Tax Lien withdrawal after entering into a Direct Debit installment agreement
If you are a qualifying taxpayer and meet the eligibility requirements, you may have your filed Notice of Federal tax Lien withdrawn after entering into a Direct Debit installment agreement. Your request for lien withdrawal must be in writing. Please use Form 12277, Application for Withdrawal (PDF). In item 11, “Reason for requesting withdrawal,” check the third box , “The taxpayer is under a Direct Debit Installment Agreement.“
Qualifying taxpayers are:
- Businesses with income tax liability only
- Out of business entities with any type of tax debt
Eligibility Requirements are:
- The current amount you owe must be $25,000 or less
- If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting the lien withdrawal to be eligible
- Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
- You must be in full compliance with other filing and payment requirements
- You must have made three consecutive direct debit payments
- You cannot have previously received a lien withdrawal for the same taxes unless the withdrawal was for an improper filing of the lien
- You cannot have defaulted on your current, or any previous, direct debit installment agreement
If you are currently on a regular installment agreement, you may convert to a Direct Debit Installment Agreement. To convert a regular installment agreement to a Direct Debit Installment Agreement::
- Individuals may use the Online Payment Agreement application, call the toll free line listed below, or visit your local IRS office
- Businesses may call the toll free line listed below or visit your local IRS office
If you have questions or need assistance with the direct debit process, please call the applicable telephone number below.
|Individuals (Wage & Salary Earners)||1-800-829-0922|
If you default on your Direct Debit Installment Agreement after the lien is withdrawn, a new notice of lien may be filed and collection efforts may resume.
- Struggling with Paying Your Taxes? Let IRS Help You Get a Fresh Start
- Understanding a Federal Tax Lien