What makes Tax Advocate Group different from other tax firms?

We follow a structured three-phase process—Investigation, Compliance, and Resolution—that ensures we fully understand your situation before recommending a path forward. Our team includes enrolled agents and tax attorneys licensed in all 50 states, and we back our work with a money-back guarantee.

How does the tax resolution process work?

We file Power of Attorney to pull your IRS transcripts and assess your full tax picture. Next, we bring all unfiled returns current. Finally, we negotiate the best available resolution: an installment agreement, Offer in Compromise, penalty abatement, or Currently Not Collectible status.

Can you stop a wage garnishment or bank levy?

Yes. Once we file Power of Attorney, we contact the IRS or state agency to request an immediate release or reduction of the levy. In many cases, we can get garnishments stopped within days by demonstrating financial hardship or proposing an alternative arrangement.

Do you handle state tax problems?

Yes. We work with all 50 state tax authorities in addition to the IRS. State agencies have their own garnishment and lien procedures, and we know how to navigate each one.

Selling or Refinancing With an IRS Tax Lien? Know Which Request Fits

A home sale or refinance can expose a tax problem at a difficult moment: the title company finds a Notice of Federal Tax Lien while everyone is working toward a closing date.

A federal tax lien is the government’s legal claim against property for unpaid taxes. The public notice alerts other creditors to that claim. When a transaction is involved, the practical question is how to address the IRS’s interest in that particular property.

Depending on the facts, the answer may involve a payoff, a discharge, or a subordination. These options have different purposes, documentation, and consequences.

Start with the transaction and the payoff

Tell your tax professional and settlement team whether you are selling the property, refinancing an existing mortgage, or seeking other financing. Get the recorded lien information and a current IRS payoff amount.

If the transaction will fully pay the tax debt, coordinate the payment and the documentation needed for closing. IRS Publication 1450 explains how to request a payoff and a certificate of release. The IRS generally must release the lien within 30 days after the liability is fully paid, becomes legally unenforceable, or the IRS accepts a bond for payment.

That release rule should not be treated as a promise that every closing can proceed immediately. Your lender and title company still need to confirm what documentation they require.

Selling: a discharge may address the property

A certificate of discharge removes the federal tax lien from the specific property named in the certificate. It can be relevant when a sale will not produce enough money to pay the entire tax debt.

One possible basis is payment to the IRS of at least the value of its interest in the property. Determining that value involves more than subtracting the mortgage from the sale price. Claims with priority over the IRS and proposed settlement costs can matter.

Another possible basis is a determination that the government’s interest in the property has no value. That requires IRS review. A homeowner’s belief that there is no equity does not establish approval.

A discharge does not forgive the unpaid tax balance or automatically remove the lien from other property. Form 14135 is the application; Publication 783 explains the different legal bases and supporting information.

Refinancing: subordination changes creditor priority

A subordination allows a named creditor to move ahead of the IRS’s lien on the property covered by the certificate. The federal tax lien remains in place.

This can be relevant when a lender needs priority for a new mortgage and the refinance will not fully pay the taxes. Depending on the legal basis, the request may involve payment to the IRS or a showing that the transaction will increase what the government can ultimately collect and make collection easier.

For example, Publication 784 describes a refinance at a lower interest rate that could allow larger monthly payments toward the tax debt. The application must explain the benefit to collection. A lower mortgage payment alone is not a guarantee of approval.

Form 14134 is the application for subordination. The proposed loan terms, property value, title information, and closing costs help explain the transaction.

Withdrawal and release serve different purposes

Withdrawal removes the public Notice of Federal Tax Lien. It does not, by itself, cancel an unpaid tax debt. Eligibility must be evaluated separately.

Release addresses the lien itself when the applicable release conditions are met. Asking for a withdrawal simply because a lender mentions a “lien problem” can send the review in the wrong direction. Identify the actual obstacle before choosing a form.

Build time into the closing plan

Publications 783 and 784 ask applicants to submit requests at least 45 days before the transaction date when the certificate is needed. This is advance-planning guidance, not a guaranteed processing period or approval deadline.

Prepare the documents that support the requested certificate. Depending on the request, those can include the deed or legal description, valuation information, sales contract or proposed loan agreement, title information, and proposed closing statement. Use the current forms and check Publication 4235 for submission and contact information.

A tax professional can help evaluate the appropriate request, assemble the supporting financial picture, and coordinate with the lender or settlement team. The IRS decides whether the requirements are met.

If an IRS tax lien is affecting a planned sale or refinance, contact our team through this website to discuss the transaction, your tax debt, and the next steps available in your circumstances.

General educational information, not individualized tax or legal advice.