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How to Apply for a

Certificate of Discharge From Federal Tax Lien
A Certificate of Discharge under Internal Revenue Code Section 4. If you are not the taxpayer, enter in the box next to “Name”
6325(b) removes the United States’ lien from the property your relationship to the taxpayer (e.g. parent, uncle, sister,
named in the certificate. Discharge of property under Internal no relation, etc).
Revenue Code Section 6325(c) subject to an Estate Tax Lien is
not covered in this publication. For Estate Tax Lien discharges Section 3 - Purchaser/Transferee/New Owner
see instead the application and instructions found in Form 4422 1. Check the box on the first line of Section 3 if you are both
the property owner and the applicant.
1. Complete Form 14135, Application for Certificate
of Discharge of Federal Tax Lien attached with this 2. Enter the name of the property owner. Or enter “NA” if you
publication. have checked the box indicating you are both the applicant
and the property owner, enter, “same as applicant”.
2. Mail the completed Form 14135 and the appropriate
attachments to: 3. Enter the property owner’s relationship to the taxpayer (e.g.
IRS Advisory Consolidated Receipts taxpayer, parent, no relation, etc.).
7940 Kentucky Drive, Stop 2850F
Florence, KY 41042 Section 4 - Attorney/Representative Information
(Refer to Publication 4235 Collection Advisory Group This section is used to list the taxpayer’s representative or a
Addresses for additional contact information.) representative of a party other than the taxpayer, such as the
If you have any questions, contact the Advisory Consolidated lender, needing to receive information from the IRS. However,
Receipts Office at 859-594-6090. you do not need a representative to request discharge of the
federal tax lien.
If you want to know how much you owe in order to pay the
lien(s) in full, call 1-800-913-6050, visit the nearest Taxpayer 1. Check the box on the first line of Section 4 if you are
Assistance Center, or contact the revenue officer assigned to attaching a Form 8821 (Tax Information Authority) or Form
your case. 2848 (Power of Attorney) with your application. If you
are attaching one of these forms, please make sure it is
Important! completely filled out, signed, and dated. You must provide
Please submit your application at least 45 days before the one of these forms if the representative represents an
transaction date that the certificate of discharge is needed. interest other than the taxpayer.
Doing so will allow sufficient time for review, determination, 2. Enter the name, address, phone number, and fax number
notification and the furnishing of any applicable documents by of your representative in this action. The IRS will work with
the transaction date. you and your representative to process your application.
Or enter “NA” on the name line if you are not using a
Information Required on the Application representative.
3. Enter whose interest the representative represents (e.g.
Section 1 - Taxpayer Information
taxpayer, lender, title company, etc.). This allows the IRS
1. Enter the name and address of the individual(s) or business to determine what information can be shared with the
as it appears on the Notice of Federal Tax Lien (NFTL). A representative.
second name line is provided if needed.
Section 5 – Lender/Finance Company Information
2. Enter, if known, the last 4 digits of the social security
(Settlement/Escrow Company for Section 6325(b)(3) only)
number (SSN) or full employer identification number as it
appears on the NFTL. Enter the company name, contact name, and phone number for
the title or escrow company that will be used at settlement.
3. Enter, if known and if applicable, the last 4 digits of any
spousal SSN (secondary SSN) associated with the tax debt
listed on the NFTL. Section 6 – Monetary Information
4. Provide a daytime phone number and a fax number. 1. Provide the proposed property sale amount
2. Provide the amount of proceeds the IRS can expect for
Section 2 - Applicant Information application to the tax liability.
1. Check the box on the first line of Section 2 if you are both 3. Enter NA for the amount of proceeds the IRS can expect, if
the taxpayer and the applicant. If you are not the taxpayer, you anticipate there will be no proceeds.
attach a copy of the lien.
2. If you have checked the box indicating that you are the Section 7 - Basis for Discharge
taxpayer and your information is the same as listed on the Discharge of property from the federal tax lien may be granted
lien, enter “same as taxpayer” on the name line. under several Internal Revenue Code (IRC) provisions. After
3. If you are not the taxpayer or you are the taxpayer but your reviewing the discharge sections, explanations, and examples
information is no longer the same as the information on the below, select the discharge section that best applies to your
Notice of Federal Tax Lien, enter your name (include any application. If the IRS does not agree with your selection after
name changes), current address, daytime phone number its review, an explanation of the decision will be provided.
and fax number.

Publication 783 (Rev. 12-2022) Catalog Number 46755I Department of the Treasury Internal Revenue Services www.irs.gov

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1. 6325(b)(1) – a discharge may be issued under this Submit a copy of the proposed escrow agreement.
provision if the value of the taxpayer’s remaining property
encumbered by the federal tax lien is equal to at least twice 5. 6325(b)(4) – a discharge will be issued under this provision
the amount of the federal tax liability secured by the lien to a third party who owns the property if a deposit is made
and any encumbrance entered into before the IRS filed its or an acceptable bond provided equal to the government’s
public notice of the lien. If there are mortgages, state and/ interest in the property. In the case of Tenancy by
or local taxes, mechanics liens, etc., the amount of these Entireties property, a deposit or an acceptable bond
debts would be added to the amount of the tax liability and totaling one-half the government’s interest in the property
multiplied by 2. must be made. If you are the property owner (but not the
taxpayer, i.e., you are not responsible for the tax liability)
Example and you make a deposit or post an acceptable bond to
Tax liability $15,500 obtain a discharge under this section, you have 120 days
Other Debts + $23,334 to file an action in federal district court, under section
$38,834 7426(a)(4), challenging the IRS’ determination of the
x 2 government’s lien interest. This is the exclusive remedy
$77,668 available to the third party for the return of the deposit
The property remaining subject to the lien must be at least or accepted bond or a portion thereof. An administrative
$77,668. request for refund and a refund suit in district court is not
available. The Circular 570, available at https://fiscal.
2. 6325(b)(2)(A) – a discharge may be issued under this treasury.gov/surety-bonds/ contains a list of companies
provision when the tax liability is partially satisfied with an certified by the Secretary of the Treasury as providers of
amount paid that is not less than the value of the United acceptable securities.
States’ interest in the property being discharged. For 6. 6325(c) – a discharge of property subject to an Estate Tax
example, the IRS has a lien totaling $203,000 and: Lien is not covered in this publication. Please refer to Form
• Property selling for: $215,000 4422.
• Minus encumbrances senior to IRS lien: $135,000 Section 8 – Description of Property
• Minus proposed settlement costs: $ 15,000 1. Enter a detailed description of the property to be
• The IRS lien interest equals: $ 65,000 discharged from the federal tax lien.
After the IRS receives and applies the $65,000 in partial 2. When the property is real estate include the type of
satisfaction of the tax liability, there remains an outstanding property, for example, 3-bedroom house; etc. When the
tax debt of $138,000. property is personal property include serial or vehicle
numbers, as appropriate, for example, 2002 Cessna twin
In the case of Tenancy by Entireties property, the United engine airplane, serial number AT919000000000X00; etc.
States is generally paid one-half of the proceeds in partial 3. Provide the physical address if real estate or physical
satisfaction of the liability secured by the tax lien. location address if personal property.
3. 6325(b)(2)(B) – a discharge may be issued under this 4. Check the appropriate box to indicate whether you
provision when it is determined that the government’s attached a copy of the title or deed to the property.
interest in the property has no value. The debts senior to 5. If you are applying under 6325(b)(1) check the “Attached”
the federal tax lien are greater than the fair market value of box and attach copies of the titles or deeds for property
the property or greater than the sale value of the property. remaining subject to the lien. If you are not applying under
Submit a copy of the proposed escrow agreement as part 6325(b)(1) check the “NA” box.
of the application.
4. 6325(b)(3) – a discharge may be issued under this Section 9 – Appraisal and Valuations
provision if an agreement is reached with the IRS allowing 1. Check the “Attached” box after “Required Appraisal”
the property to be sold. Per an escrow agreement the sale indicate whether you have attached the required
proceeds must be held in a fund subject to the claims appraisal by a disinterested third party. This is typically a
of the United States in the same manner and priority professional appraisal providing neighborhood analysis;
the claims had prior to the property being discharged. description of the site; description of the improvements;
For example, there are two mortgages senior to the IRS cost approach; comparable sales; definition of market
tax lien totaling $32,000 and $5,000. The government’s value; certification; contingent and limiting conditions;
interest in the property is $40,000 and there are liens on interior and exterior photos of the property; exterior photos
the property junior to the IRS lien in the amount of $3,000, of comparable sales used; comparable sales location map;
$12,000 and $2,990. The proceeds from the sale would be sketch of subject property showing room layout; flood map
dispensed by paying the debts in the following sequence. and qualifications of the appraiser.
a. $32,000 2. Check the appropriate box under the “Plus One of the
Following Additional Valuations” section to indicate which
b. $5,000
other type of property value verification is attached with
c. $40,000 your application.
d. $3,000 Note: For applications under IRC 6325(b)(1), valuation
information described above must also be provided for
e. 12,000 property remaining subject to lien.
f. $2,990

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Note: For property being sold at public auction, provide 2. An escrow agreement must specify type of account,
the date and place of the sale, the proposed amount for name and depositary for account, conditions under which
which the property will be sold, and a statement that the payment will be made, cost of escrow, and the name
United States will be paid in the proper priority from the and address of any party identified as part of the escrow
proceeds. agreement.
Section 10 − Federal Tax Liens Section 16 − Waiver
This section is important when the applicant and the taxpayer This section applies only if you are:
are different. If the applicant and the taxpayer are the same, this • The property owner, but
section may be skipped.
• Not liable for the tax debt (i.e. not named on the lien), and
1. Check the “attached” box if you have attached copies of • Applying under 6325(b)(2)(A).
the liens with your application.
By checking the “Waive” box you are waiving the option to
2. If you checked the “no” box list the System Lien have the payment treated as a deposit under section 6325(b)(4)
Identification Number (SLID) found in the top right hand which has the accompanying right to request a return of funds
box of the lien document, if available. If you do not have and to bring an action under section 7426(a)(4).
the number(s) enter “unknown” in the first box.
If you check the “no” box, your application will automatically
Section 11 − Sales Contract/Purchase Agreement be considered under 6325(b)(4) which provides for return of
1. Check the box indicating whether the proposed sales deposited funds and a court challenge under 7426(b)(4).
contract or purchase agreement is attached.
2. If you checked the “no” box, describe how the taxpayer Section 17 − Declaration
named on the lien will be divested of their interest in the The applicant or their authorized Power of Attorney signs
property or why they have no interest in the property. the application form. You must sign your application under
penalties of perjury attesting to having examined the
Section 12 − Title Report application, accompanying schedules or documents, exhibits,
1. Check the box indicating whether the title report is affidavits, and statements and declaring to the best of your
attached. knowledge and belief that it is true, correct and complete.
2. If you checked the “no” box, use the space provided to list
any encumbrances (liens or claims) against the property Frequently Asked Questions
that came into existence before the United States’ lien
interest or which have priority over the lien. Include name Q1: When do I make a payment?
and address of holder; description of encumbrance, The Internal Revenue Code section under which the certificate
e.g., mortgage, state lien, etc.; date of agreement; of discharge will be issued or granted determines the details
original amount and interest rate; amount due at time regarding making a payment.
of application; and family relationship of the holder, if
applicable. • Discharge under 6325(b)(1) or 6325(b)(2)(B) does not
require a payment.
3. Attach a separate sheet with the information in item # 2
above if there is not enough space provided on the form. • Discharge under 6325(b)(2)(A) requires a payment, but do
not send a payment with the application. The Advisory
Section 13 − Closing Statement Group Manager will notify you, after determining the
1. Check the box indicating whether the proposed closing amount due, when to send payment.
statement is attached. This statement is often referred to NOTE: If a mortgage foreclosure is anticipated, the
as a HUD-1. application is made under section 6325(b)(2)(A) or 6325(b)(2)(B).
2. If you checked the “no” box, use the space provided to A determination will be made that either an amount is required
itemize all proposed costs, commissions, and expenses of for discharge or the United States’ interest is valueless.
any transfer or sale associated with property. In the case of foreclosure you will receive, within 30 days of the
3. Attach a separate sheet with the information in item # 2 receipt of a complete and approved application, a conditional
above if there is not enough space provided on the form. commitment letter for a certificate of discharge.
Section 14 − Additional Information NOTE: Relocation Expenses - If a discharge under 6325(b)(2)
1. Check the box indicating whether you are attaching other (A) or 6325(b)(2)(B) is issued and if the sale is of the principal
documents relevant to the discharge application. This residence, the taxpayer may be eligible for a relocation expense
could include affidavits or court documents. allowance because of an inability to pay. The relocation
expense allowance is subject to limitations. To apply for
2. Check the “no” box if you do not have any additional the allowance complete and submit Form 12451, “Request
documentation. for Relocation Expense Allowance” with the application for
discharge.
Section 15 − Escrow Agreement
1. Check the box indicating whether you are attaching a Discharge under 6325(b)(3) requires a payment, but do not
draft escrow agreement. This is only applicable if you are send a payment with the application. First, the draft escrow
applying under 6325(b)(3). agreement must be submitted.

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Second, the Advisory Group Manager approves the escrow NOTE: Under provisions 6325(b)(2)(A) and 6325(b)(2)(B) at
agent selected by the applicant; any reasonable expenses the conclusion of a mortgage foreclosure the certificate will
submitted as incurred in connection with the sale of the be issued in accordance with the terms of the conditional
property; the claim amounts and priorities, and the distribution commitment letter. Also see, Publication 487, How to Prepare
timing of the fund. an Application Requesting the United States to Release Its
Right to Redeem Property Secured by a Federal Tax Lien.
Third, the agreement is finalized and contains signatures of all
parties involved including Advisory Group Manager prior to the • Under 6325(b)(3) you will receive the certificate when the
discharge being issued. amount of the government’s interest in the property has
been placed in the approved escrow account.
Note: The escrow account must be funded before payment of
any claim or lien through money paid by the applicant or from • Under 6325(b)(4) you will receive the certificate when the
the sale proceeds. amount equal to the government’s interest in the property
is received or an approved bond has posted.
Discharge under 6325(b)(4) requires a bond or deposit but do
not send one with the application. The Advisory Group manager Q5: What happens if my application is denied?
must first determine the amount of bond or deposit needed If your application is denied, you will receive Form 9423,
for the discharge and determine that the bond company, if Collection Appeal Request and Publication 1660, Collection
applicable, is from the approved list. Appeal Rights, with an explanation of why your application was
denied.
Q2: What is an acceptable form of payment?
Make payments in cash or by the following types of checks: Privacy and Paperwork Reduction
certified; cashiers; or treasurer’s check. The check must be Act Notice
drawn on any bank or trust company incorporated under the The Privacy act of 1974 says that when we ask you for
laws of the United States, or of any state, or possession of information about yourself, we must first tell you our legal right
the United States. Payment can also be made using a United to ask for the information, why we are asking for it, and how it
States postal, bank, express or telegraph money order. will be used. We must also tell you what could happen if you do
not provide it and whether or not you must respond under the
Important! If you pay by personal check, issuance of the law.
certificate of discharge will be delayed until the bank honors the
check. We ask for the information on this form to carry out the Internal
Revenue laws of the United States. This information requested
Q3: Who makes the decision to issue a Certificate of on this form is needed to process your application and to
Discharge? determine whether the federal tax lien can be discharged. You
In all cases Advisory staff will review and verify the information are not required to apply for discharge; however, if you want the
provided, determine whether a certificate of discharge should federal tax lien to be discharged, you are required to provide
be issued, and contact you with any questions. Advisory may the information requested on this form. Section 6109 requires
contact you, your representative, or any person relative to the you to provide the requested identification numbers. Failure to
transaction for additional information. provide this information may delay or prevent processing your
application; providing any false information may subject you to
The Advisory Group Manager has the responsibility to review penalties.
and approve the determination and let you know the outcome.
If approved, you will receive a conditional commitment letter. The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for individuals filing this form is approved under OMB control
Q4: When will I receive the Certificate of Discharge? number 1545-2174. The estimated burden for those who file
The Internal Revenue Code under which the certificate of this form is shown below.
discharge will be issued or granted and the time at which you
are divested of your interest in the property determines when • Recordkeeping 2 hr., 45 min.
you will receive the certificate. • Learning about the law or the form 2 hr.
• Under 6325(b)(1) you will receive the certificate when it is • Preparing the form 1 hr., 30 min.
determined the remaining property meets the criteria of the • Copying, assembling, and sending the form to the IRS 85
provision. min.
• Under 6325(b)(2)(A) you will receive the certificate after Routine uses of this information include giving it to the
IRS receives payment of the agreed upon amount in partial Department of Justice for civil and criminal litigation, and
satisfaction of the tax liability, proof that the taxpayer has to cities, states, the District of Columbia, and United States
been divested of title, and receipt of a copy of the final commonwealths and possessions for use in administering their
settlement statement. tax laws. Advisory may contact you, your representative, or any
• Under 6325(b)(2)(B) you will receive the certificate when person relative to the transaction for additional information.
it is determined that the government’s interest in the We may also disclose this information to other countries
property is valueless, the IRS has received proof that the under a tax treaty, to federal and state agencies to enforce
taxpayer has been divested of title, and a copy of the final federal nontax criminal laws, or to federal law enforcement and
settlement statement. intelligence agencies to combat terrorism.

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