Request withdrawal of a Notice of Federal Tax Lien

Withdrawal does not cancel the tax debt

A withdrawal removes the public Notice of Federal Tax Lien. It does not by itself release the statutory lien, eliminate the balance, stop interest, or prevent collection. Continue required payments and protect every deadline in an IRS notice.

1. Identify the document you want withdrawn

A federal tax lien arises by law after the IRS assesses tax, sends a demand for payment, and the debt is not paid. A Notice of Federal Tax Lien (NFTL) is the public document filed with a state or local recording office to alert other creditors. Form 12277 addresses that filed notice, not every collection action.

Do not confuse an NFTL with a levy. A lien secures the government's claim against property; a levy takes property or rights to property to pay the debt. A request to withdraw an NFTL does not automatically stop a levy.

2. Confirm a recognized basis for withdrawal

Internal Revenue Code section 6323(j) permits the IRS to withdraw an NFTL when one or more specified conditions apply. Form 12277 lists the main bases:

The notice was filed prematurely or not in accordance with IRS procedures.
The taxpayer entered an installment agreement to satisfy the liability and the agreement does not provide for the notice to remain filed.
Withdrawal will facilitate collection of the tax.
Withdrawal is in the best interests of the taxpayer and the United States.

The IRS reviews the facts and does not approve every request merely because a box is checked. Except for limited circumstances such as a filing that violated the bankruptcy automatic stay, withdrawal authority is generally discretionary.

3. Review the two common Fresh Start routes

The IRS describes two additional general routes on its current lien page. A post-release withdrawal may be considered after the tax liability has been satisfied and the lien released when the taxpayer has filed all required individual, business, and information returns for the previous three years and is current with estimated tax payments and federal tax deposits, when applicable.

A withdrawal may also be considered for a qualifying taxpayer using a Direct Debit Installment Agreement. The IRS lists a balance of $25,000 or less after any paydown, full payment within 60 months or before the collection period expires, full filing and payment compliance, three consecutive direct-debit payments, and no default on the current or a previous direct-debit agreement. These are general eligibility conditions, not an approval guarantee.

4. Gather the lien and account information

A copy of Form 668(Y), Notice of Federal Tax Lien, if available.
The serial number, filing date, and recording office when a copy is unavailable.
The tax periods and liabilities listed on the notice.
Proof supporting the selected withdrawal basis, such as payment-plan records, proof of release, filing compliance, payment history, or facts showing a procedural error.
A concise explanation connecting the documents to the requested basis.

Use an IRS Individual Online Account or the contact information on the notice to confirm account information. Do not enter a Social Security number, employer identification number, or full account information into WhatDoIFile.

5. Complete and sign Form 12277

The current IRS catalog continues to list Form 12277 with an October 2011 revision. Enter the taxpayer name and taxpayer identification number as shown on the NFTL, representative information when applicable, current contact information, lien details, the current status of the lien, the reason for withdrawal, and a detailed explanation. Attach additional pages and supporting documents when needed.

The taxpayer, authorized representative, or appropriate business officer must sign and date the request. Form 12277 does not list an application fee. Download the form from IRS.gov immediately before filing rather than using a saved copy from another source.

6. Use the current official submission channel

Publication 4235, revised July 2025, states that applications for withdrawal may be submitted through IRS.gov using an IRS Online Account or sent to Advisory Consolidated Receipts by the current mail or fax instructions in that publication. If the account is assigned to an IRS employee or a letter provides a specific route, follow the current instructions from that office.

Because addresses and fax numbers can change, use the live Publication 4235 instead of copying an address from an older form or guide. Keep the complete submission and delivery confirmation. Do not send the application directly to the IRS Independent Office of Appeals.

7. Follow the determination

The IRS may ask for more information. If it approves withdrawal, it files Form 10916 or 10916-A with the recording office where the NFTL was filed and provides a copy. At the taxpayer's written request, the IRS can send withdrawal information to specifically identified creditors, financial institutions, or credit reporting agencies.

The IRS does not publish a guaranteed processing time for Form 12277. Continue filing required returns, making required payments, and responding to collection notices while the request is pending.

8. Appeal a denial promptly

A denial can generally be challenged through the Collection Appeals Program. The current Form 9423 instructions require a managerial conference first for lien-certificate denials and use very short business-day timeframes after that conference. Follow the denial letter and current Form 9423 immediately. A CAP decision is binding administratively and does not provide the same Tax Court review available after a timely Collection Due Process hearing.

If the IRS recently filed an NFTL and sent a notice offering a Collection Due Process hearing, Form 12277 does not extend the date shown on that notice. File Form 12153 by the separate deadline when you want that review.