Notice of Federal Tax Lien
Federal tax lien on a house: release, withdrawal, discharge, and subordination.
Two certificates in 26 U.S.C. section 6325 address a federal tax lien on a house that is being sold or refinanced. A certificate of discharge under section 6325(b) removes the lien from the house named in it, and a certificate of subordination under section 6325(d) lets a named lender move ahead of the United States while the lien stays in place. The applications are Form 14135 and Form 14134, and IRS Publications 783 and 784 ask for them at least 45 days before the transaction date.
In Maryland, the Notice of Federal Tax Lien on a house is filed with the clerk of the circuit court of the county where the house is located; in the District of Columbia, with the Recorder of Deeds. Under 26 U.S.C. section 6320, the IRS must send written notice of the filing, Letter 3172, within 5 business days, and, for the first lien notice filed for each tax assessment within a tax period, the taxpayer has 30 days after that 5-day period to request a Collection Due Process hearing. The date printed on the letter controls.
Mr. Powell handles federal tax lien matters for individuals and closely held businesses nationwide from the office at 1629 K Street NW, Suite 300 in Washington, DC. He is admitted in the District of Columbia and Maryland, and before the United States District Court for the District of Maryland and the United States Tax Court.
Internal Revenue Code sections 6320 to 6323, 6325, 6326, and 6502, Treasury Regulation 301.6326-1, Internal Revenue Manual 5.12, and the IRS forms and publications linked on this page were checked on uscode.house.gov, ecfr.gov, and irs.gov on September 23, 2026, and the sale, refinance, filing-office, and hearing rules, Treasury Regulation 301.6323(f)-1, Publication 594, and the Maryland and District lien statutes were checked on irs.gov, law.cornell.edu, mgaleg.maryland.gov, and code.dccouncil.gov on October 24, 2026. The notice, the form, and its instructions control over this summary. This page is not legal advice.
Can the IRS put a lien on my house, and how long does it last?
Yes. Under 26 U.S.C. section 6321, when a person neglects or refuses to pay a tax after demand, the amount, with interest and penalties, is a lien in favor of the United States on all of the person's property and rights to property, whether real or personal. Under section 6322 the lien arises when the assessment is made and continues until the liability is satisfied or becomes unenforceable by lapse of time, and section 6502 generally allows 10 years after assessment to collect, a period later events can suspend or extend. IRS Publication 594 says the lien applies to property such as a home and car.
A lien is not a levy: the IRS says a levy actually takes the property. IRS levy covers wage and bank levies.
Official source: 26 U.S.C. 6321, lien for taxes
Official source: 26 U.S.C. 6322, period of lien
Official source: 26 U.S.C. 6502, collection after assessment
Official source: Publication 594 (Rev. 1-2026), The IRS Collection Process
Official source: What’s the difference between a levy and a lien?
Can I sell my house with a federal tax lien on it?
Yes, but an IRS page on a lien on a home says the lien must be satisfied before the home is sold. It says that, normally, if there is equity, the lien is paid in part or in whole out of the sale proceeds at closing, and that if the home sells for less than the lien amount, the taxpayer can request a discharge to allow the sale to be completed. Under 26 U.S.C. section 6325(b), the IRS may issue a certificate of discharge when, among other cases, it is paid at least the value of its interest in the house or it determines that interest has no value. Publication 783 asks for the application, Form 14135, at least 45 days before the transaction date.
Section 6325(b) also allows a discharge when the property left under the lien is worth at least double the sum of the unpaid liability and the other liens on it that have priority, or when the sale proceeds are held as a fund subject to the government’s claims under an agreement with the IRS. For property held as tenants by the entirety, IRM 5.12.10.3.6 says that when the lien is against only one of the owners, the government’s interest is generally one-half of the property’s value, and Publication 783 says the United States is generally paid one-half of the proceeds, and that when a section 6325(b)(2) discharge is issued on the sale of a principal residence, the taxpayer may be eligible for a relocation expense allowance because of an inability to pay. Publication 594 says the lien notice shows the assessed balance as of its date, not the payoff.
Official source: What if there is a federal tax lien on my home?
Official source: 26 U.S.C. 6325, release of lien or discharge of property
Official source: Publication 783 (Rev. 12-2022), certificate of discharge
Official source: Form 14135 (Rev. 11-2024), application for certificate of discharge
Official source: IRM 5.12.10, Lien Related Certificates
Can I refinance my house with a federal tax lien on it?
IRS Publication 594 says that a homeowner who cannot refinance because the federal tax lien has priority over the new mortgage may request that the IRS subordinate its lien to the new mortgage. Under 26 U.S.C. section 6325(d), the IRS may issue a certificate of subordination when it is paid an amount equal to the lien or interest placed ahead of it, or when it believes subordination will increase what it ultimately collects and make collection easier. Publication 784 asks for the application, Form 14134, at least 45 days before the transaction date.
In the refinance example in Publication 784, the United States’ interest is the equity the new loan produces after the existing loan and the closing costs are paid, and the lien remains on the property while the refinanced loan has priority over it. The IRS says subordination does not remove the lien but may make it easier to get a loan or mortgage.
Official source: Publication 784 (Rev. 12-2022), certificate of subordination
Official source: Form 14134 (Rev. 10-2024), application for certificate of subordination
Official source: Understanding a federal tax lien
Where is a federal tax lien on a house filed in Maryland and the District of Columbia?
Under 26 U.S.C. section 6323(f) and Treasury Regulation 301.6323(f)-1, the Notice of Federal Tax Lien for real property is filed in the one office the state designates where the property is physically located, or with the federal district court clerk if the state has not designated one. Md. Code, Real Property section 3-401(a) designates the clerk of the circuit court of the county where the real property is situated, for the notice and for certificates affecting the lien. For property in the District of Columbia, section 6323(f)(1)(C) names the Recorder of Deeds. Under section 6323(a), the lien is not valid against a purchaser, a holder of a security interest, a mechanic's lienor, or a judgment lien creditor until the notice is filed.
IRM 5.12.2.6 says a notice generally will not be filed when the unpaid balance of assessments is less than $10,000, though one may be filed to protect the government’s interest.
Official source: 26 U.S.C. 6323, validity and priority against certain persons
Official source: Treasury Regulation 301.6323(f)-1, place for filing notice
Official source: Md. Code, Real Property section 3-401
Official source: IRM 5.12.2, Notice of Lien Determinations
How long is there to request a hearing after a federal tax lien is filed?
Under 26 U.S.C. section 6320, the IRS must notify the taxpayer in writing no more than 5 business days after it files the notice of lien, and the taxpayer may request a hearing during the 30-day period that begins the day after that 5-day period. Letter 3172 is that notice, and IRS Publication 1660 says the lien notice states the date the 30-day period expires. The IRS Independent Office of Appeals holds the hearing, one for each tax assessment within a tax period, and under section 6320(c), section 6330(d)(1) allows a petition to the U.S. Tax Court within 30 days of the determination.
Publication 1660 says the request is made on Form 12153 or in another written request with the same information; CDP vs equivalent hearing covers the window and the later equivalent hearing.
Official source: 26 U.S.C. 6320, notice and opportunity for hearing upon filing of notice of lien
Official source: Publication 1660 (Rev. 1-2020), Collection Appeal Rights
How is a federal tax lien on a house released or withdrawn?
Under 26 U.S.C. section 6325(a), the IRS must issue a certificate of release within 30 days after the day it finds the liability, with interest, fully satisfied or legally unenforceable, or after it accepts a bond, and Publication 1450 says the certificate is filed in the same recording office as the notice. A withdrawal under section 6323(j) removes the public notice, but the tax is still owed. Section 6323(j)(1) lists four grounds on which the IRS may withdraw a notice, including a filing that was premature or otherwise not in accordance with IRS administrative procedures, an installment agreement that does not provide otherwise, and a withdrawal that will facilitate collection, and IRM 5.12.9 says taxpayers generally request a withdrawal on Form 12277.
IRM 5.12.9 states that a withdrawal and a certificate of release cannot be used for one another: a withdrawal only removes the effect of the notice, while a release also extinguishes the lien. IRM 5.12.9.3.2.1 adds a withdrawal route for a direct debit installment agreement with an unpaid balance of assessments of $25,000 or less, among other conditions. Publication 594 says the release is automatic when the collection period has ended. Section 6326 separately allows an appeal for a release of the lien alleging an error in the filing of the notice, and Treasury Regulation 301.6326-1 limits it to four listed allegations, such as a liability satisfied before the notice was filed or a collection period that expired before the filing, and requires it in writing within one year after the taxpayer becomes aware of the filing. Under section 6325(e), if a person other than the taxpayer is or may be injured because a filed notice appears to refer to that person, through a confusion of names or otherwise, the IRS may issue a certificate that the lien does not attach to that person’s property.
Official source: Publication 1450 (Rev. 7-2018), requesting a certificate of release
Official source: Form 12277 (Rev. 10-2011), application for withdrawal
Official source: IRM 5.12.9, Withdrawal of Notice of Federal Tax Lien
Official source: 26 U.S.C. 6326, administrative appeal of liens
Official source: Treasury Regulation 301.6326-1
Is a Maryland tax lien the same as a federal tax lien?
No. Under Md. Code, Tax-General section 13-805, unpaid Maryland tax, interest, and penalties are a lien in favor of the State on all property and rights to property of the person required to pay the tax, while 26 U.S.C. section 6321 creates the federal lien in favor of the United States. Under Tax-General section 13-807, a tax collector may file a notice of tax lien with the clerk of the circuit court for the county where the property is located, and the clerk records and indexes it and enters it in the court's judgment docket.
Comptroller of Maryland collections covers the State’s lien. D.C. Code section 47-4421 makes a District tax that goes unpaid after demand a lien in favor of the District of Columbia on all of the person’s property and rights to property, real or personal; D.C. OTR collections covers it.
Official source: Md. Code, Tax-General section 13-805
Official source: Md. Code, Tax-General section 13-807
Official source: D.C. Code section 47-4421, lien for taxes
When I handle the lien.
I handle the lien when the sale or refinance of a house is under contract or a closing date is fixed, when a business needs credit and the lender wants priority over the United States, when a notice names the wrong person or was filed in error, and when the IRS has denied a withdrawal, discharge, or subordination, which Publication 594 says can be appealed under the Collection Appeals Program.
A taxpayer who has paid in full can handle the release alone: the IRS says it releases the lien within 30 days after payment, and Publication 1450 lists what a written request contains if the lien has not been released by then. Publication 783 states that a representative is not needed to request a discharge.
Related pages
Related IRS collections resources.
- IRS collections attorneyLiens, levies, and payment options.
- Letter 3172The lien filing notice and its hearing.
- CDP vs equivalent hearingThe 30-day window and the equivalent hearing.
- IRS levyWage and bank levies.
- Personal injury settlement taxesSection 104 and a federal tax lien on settlement proceeds.
- Comptroller of Maryland collectionsThe State's own tax lien.
- D.C. OTR collectionsDistrict tax liens and levies.
- Maryland tax attorneyComptroller and IRS matters.
- IRS Form 433-A and 433-BThe collection financial statement.
- Offer vs installment agreementSettle for less or pay over time.
- Bankruptcy and IRS tax debtMaryland bankruptcy and filed tax liens.
- IRS AppealsProtests, conferences, and Collection Due Process.
- IRS Letter CheckLook up an IRS letter code.
Send the letter code and the date printed on it.
Tell me the notice code, the date printed on it, the tax years it lists, and any sale, refinance, or loan closing date. Send only a high-level summary.
Requesting a consultation does not make Mr. Powell your lawyer, provide legal advice, or protect a deadline.
Law Office of Alexander Powell, PLLC. 1629 K Street NW, Suite 300, Washington, DC 20006.