IRS Resolution Options · Tax Liens

IRS Lien Discharge:
Free Your Property From a Tax Lien

A federal tax lien attaches to everything you own — including your home. When you need to sell or refinance a specific property but a lien is in the way, a lien discharge removes the lien from that one property so the deal can close. The lien stays on your other assets, but the discharged property passes with clear title. See our flat-fee pricing →

Check If I Qualify — 60 Seconds (888) 334-5052

What is the difference between IRS lien release and lien discharge?

A lien release removes the lien from all property after the debt is fully paid or settled. A lien discharge removes the lien from one specific property — such as a home being sold — while the lien remains on other assets. Discharge is used to allow a property transaction while the overall tax debt is still being resolved.

Last Reviewed: 2026-06-09

Reviewed By: TaxCase Review Editorial Team, Reviewed by a licensed tax professional

Our Methodology Data Sources Editorial Standards

What is an IRS Lien Discharge?

A federal tax lien is the government's legal claim against all of your property when you owe taxes. That includes real estate, vehicles, and financial accounts. A lien discharge is a certificate from the IRS that removes the lien from one specific piece of property, allowing that property to be sold or refinanced free of the lien.

Importantly, a discharge does not eliminate your tax debt and does not remove the lien from your other assets. It is a targeted tool: it clears the path for a single transaction. This is what makes it possible to sell a home or commercial building even while a federal tax lien is on your record.

Common Grounds for a Discharge

The IRS grants discharges under several provisions of the tax code. The right one depends on the property's value relative to the lien and other claims:

IRS Is Paid From the Sale

The sale proceeds will pay the IRS the value of its interest in the property, so the government loses nothing by releasing it.

Remaining Property Covers the Debt

Your other assets are worth at least double the tax liability plus any senior claims, so the IRS interest is still protected.

IRS Interest Has No Value

Senior liens or mortgages exceed the property value, leaving no equity for the IRS, so it can discharge the property.

Proceeds Held in Escrow

The IRS interest is paid into a deposit or escrow account pending a determination of how much it is owed.

When You Need a Lien Discharge

Selling Your Home

You have a buyer but the title company found a federal tax lien that must be cleared before closing.

Refinancing a Mortgage

Your lender requires the tax lien removed from the property before approving a refinance.

Selling Business Property

You are selling real estate or equipment tied up by a lien and need clear title to complete the deal.

How to Apply for a Lien Discharge

Apply Early

File at least 45 days before your sale or closing date so the IRS has time to process the request.

Complete Form 14135

Submit the Application for Certificate of Discharge of Property from Federal Tax Lien.

Document the Transaction

Include the purchase contract, property appraisal or value, title report, and details of any senior liens.

Identify the Discharge Basis

State which legal ground applies — payment from proceeds, sufficient remaining equity, or no IRS equity.

Receive the Certificate

Once approved, the IRS issues a Certificate of Discharge so clear title can pass at closing.

Related Resolution Options

Lien Withdrawal

Remove the public Notice of Federal Tax Lien from the record.

Installment Agreement

Pay your balance over time in monthly payments.

Offer in Compromise

Settle your tax debt for less than you owe.

Frequently Asked Questions

What is an IRS lien discharge?

A lien discharge removes a federal tax lien from one specific property, allowing you to sell or refinance that property free and clear. The lien remains on your other assets and the underlying debt still exists.

How do I apply for a lien discharge?

Apply with Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien. File it at least 45 days before the sale or closing and include details about the property, its value, the buyer, and the transaction.

Can I sell my house if the IRS has a lien on it?

Yes. With an approved discharge, you can sell a home that has a federal tax lien. The IRS is typically paid from the sale proceeds at closing, up to the value of its interest, and the property is discharged so clear title can pass.

What is the difference between a discharge and a withdrawal?

A discharge removes the lien from one specific property while leaving it on your other assets. A withdrawal removes the public Notice of Federal Tax Lien entirely. Discharge frees a property to sell or refinance; withdrawal clears the public record.

Romy Cruz, EA

Licensed Enrolled Agent

Licensed Enrolled Agent (EA) · 15 Years IRS Tax Resolution

Romy helps individuals and businesses resolve IRS tax issues including liens, levies, installment agreements, penalty relief, and offers in compromise.

Content is reviewed periodically for accuracy and updated to reflect current IRS guidance and regulations.

Need to Sell or Refinance Around a Tax Lien?

Our $399 case review evaluates your property, your lien, and your transaction to determine the right discharge basis and prepare a complete Form 14135 application before your closing deadline.