How to Apply for a

Certificate of Discharge From Federal Tax Lien

A Certificate of Discharge under Internal Revenue Code Section 

6325(b) removes the United States’ lien from the property 

named in the certificate. Discharge of property under Internal 

Revenue Code Section 6325(c) subject to an Estate Tax Lien is 

not covered in this publication. For Estate Tax Lien discharges 

see instead the application and instructions found in Form 4422

1. Complete Form 14135, Application for Certificate 

of Discharge of Federal Tax Lien attached with this 

publication.

2. Mail the completed Form 14135 and the appropriate 

attachments to:

IRS Advisory Consolidated Receipts

7940 Kentucky Drive, Stop 2850F

Florence, KY 41042

(Refer to Publication 4235 Collection Advisory Group 

Addresses for additional contact information.)

If you have any questions, contact the Advisory Consolidated 

Receipts Office at 859-594-6090.

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 

Assistance Center, or contact the revenue officer assigned to 

your case.

Important!

Please submit your application at least 45 days before the 

transaction date that the certificate of discharge is needed. 

Doing so will allow sufficient time for review, determination, 

notification and the furnishing of any applicable documents by 

the transaction date.

Information Required on the Application

Section 1 - Taxpayer Information

1. Enter the name and address of the individual(s) or business 

as it appears on the Notice of Federal Tax Lien (NFTL). A 

second name line is provided if needed.

2. Enter, if known, the last 4 digits of the social security 

number (SSN) or full employer identification number as it 

appears on the NFTL.

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.

4. Provide a daytime phone number and a fax number.

Section 2 - Applicant Information

1. Check the box on the first line of Section 2 if you are both 

the taxpayer and the applicant. If you are not the taxpayer, 

attach a copy of the lien.

2. If you have checked the box indicating that you are the 

taxpayer and your information is the same as listed on the 

lien, enter “same as taxpayer” on the name line.

3. If you are not the taxpayer or you are the taxpayer but your 

information is no longer the same as the information on the 

Notice of Federal Tax Lien, enter your name (include any 

name changes), current address, daytime phone number 

and fax number.

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

4. If you are not the taxpayer, enter in the box next to “Name” 

your relationship to the taxpayer (e.g. parent, uncle, sister, 

no relation, etc).

Section 3 - Purchaser/Transferee/New Owner

1. Check the box on the first line of Section 3 if you are both 

the property owner and the applicant.

2. Enter the name of the property owner. Or enter “NA” if you 

have checked the box indicating you are both the applicant 

and the property owner, enter, “same as applicant”.

3. Enter the property owner’s relationship to the taxpayer (e.g. 

taxpayer, parent, no relation, etc.).

Section 4 - Attorney/Representative Information

This section is used to list the taxpayer’s representative or a 

representative of a party other than the taxpayer, such as the 

lender, needing to receive information from the IRS. However, 

you do not need a representative to request discharge of the 

federal tax lien.

1. Check the box on the first line of Section 4 if you are 

attaching a Form 8821 (Tax Information Authority) or Form 

2848 (Power of Attorney) with your application. If you 

are attaching one of these forms, please make sure it is 

completely filled out, signed, and dated. You must provide 

one of these forms if the representative represents an 

interest other than the taxpayer.

2. Enter the name, address, phone number, and fax number 

of your representative in this action. The IRS will work with 

you and your representative to process your application. 

Or enter “NA” on the name line if you are not using a 

representative.

3. Enter whose interest the representative represents (e.g. 

taxpayer, lender, title company, etc.). This allows the IRS 

to determine what information can be shared with the 

representative.

Section 5 – Lender/Finance Company Information 

(Settlement/Escrow Company for Section 6325(b)(3) only)

Enter the company name, contact name, and phone number for 

the title or escrow company that will be used at settlement.

Section 6 – Monetary Information

1. Provide the proposed property sale amount

2. Provide the amount of proceeds the IRS can expect for 

application to the tax liability.

3. Enter NA for the amount of proceeds the IRS can expect, if 

you anticipate there will be no proceeds.

Section 7 - Basis for Discharge

Discharge of property from the federal tax lien may be granted 

under several Internal Revenue Code (IRC) provisions. After 

reviewing the discharge sections, explanations, and examples 

below, select the discharge section that best applies to your 

application. If the IRS does not agree with your selection after 

its review, an explanation of the decision will be provided.
1. 6325(b)(1) – a discharge may be issued under this 

provision if the value of the taxpayer’s remaining property 

encumbered by the federal tax lien is equal to at least twice 

the amount of the federal tax liability secured by the lien 

and any encumbrance entered into before the IRS filed its 

public notice of the lien. If there are mortgages, state and/

or local taxes, mechanics liens, etc., the amount of these 

debts would be added to the amount of the tax liability and 

multiplied by 2.

Example

Tax liability $15,500

Other Debts + $23,334

 $38,834

 x 2

 $77,668

The property remaining subject to the lien must be at least 

$77,668.

2. 6325(b)(2)(A) – a discharge may be issued under this 

provision when the tax liability is partially satisfied with an 

amount paid that is not less than the value of the United 

States’ interest in the property being discharged. For 

example, the IRS has a lien totaling $203,000 and:

• Property selling for: $215,000

• Minus encumbrances senior to IRS lien: $135,000

• Minus proposed settlement costs: $ 15,000

• The IRS lien interest equals: $ 65,000

After the IRS receives and applies the $65,000 in partial 

satisfaction of the tax liability, there remains an outstanding 

tax debt of $138,000.

In the case of Tenancy by Entireties property, the United 

States is generally paid one-half of the proceeds in partial 

satisfaction of the liability secured by the tax lien.

3. 6325(b)(2)(B) – a discharge may be issued under this 

provision when it is determined that the government’s 

interest in the property has no value. The debts senior to 

the federal tax lien are greater than the fair market value of 

the property or greater than the sale value of the property. 

Submit a copy of the proposed escrow agreement as part 

of the application.

4. 6325(b)(3) – a discharge may be issued under this 

provision if an agreement is reached with the IRS allowing 

the property to be sold. Per an escrow agreement the sale 

proceeds must be held in a fund subject to the claims 

of the United States in the same manner and priority 

the claims had prior to the property being discharged. 

For example, there are two mortgages senior to the IRS 

tax lien totaling $32,000 and $5,000. The government’s 

interest in the property is $40,000 and there are liens on 

the property junior to the IRS lien in the amount of $3,000, 

$12,000 and $2,990. The proceeds from the sale would be 

dispensed by paying the debts in the following sequence.

a. $32,000

b. $5,000

c. $40,000

d. $3,000

e. 12,000

f. $2,990

Submit a copy of the proposed escrow agreement.

5. 6325(b)(4) – a discharge will be issued under this provision 

to a third party who owns the property if a deposit is made 

or an acceptable bond provided equal to the government’s 

interest in the property. In the case of Tenancy by 

Entireties property, a deposit or an acceptable bond 

totaling one-half the government’s interest in the property 

must be made. If you are the property owner (but not the 

taxpayer, i.e., you are not responsible for the tax liability) 

and you make a deposit or post an acceptable bond to 

obtain a discharge under this section, you have 120 days 

to file an action in federal district court, under section 

7426(a)(4), challenging the IRS’ determination of the 

government’s lien interest. This is the exclusive remedy 

available to the third party for the return of the deposit 

or accepted bond or a portion thereof. An administrative 

request for refund and a refund suit in district court is not 

available. The Circular 570, available at https://fiscal.

treasury.gov/surety-bonds/ contains a list of companies 

certified by the Secretary of the Treasury as providers of 

acceptable securities.

6. 6325(c) – a discharge of property subject to an Estate Tax 

Lien is not covered in this publication. Please refer to Form 

4422.

Section 8 – Description of Property 

1. Enter a detailed description of the property to be 

discharged from the federal tax lien.

2. When the property is real estate include the type of 

property, for example, 3-bedroom house; etc. When the 

property is personal property include serial or vehicle 

numbers, as appropriate, for example, 2002 Cessna twin 

engine airplane, serial number AT919000000000X00; etc.

3. Provide the physical address if real estate or physical 

location address if personal property.

4. Check the appropriate box to indicate whether you 

attached a copy of the title or deed to the property.

5. If you are applying under 6325(b)(1) check the “Attached” 

box and attach copies of the titles or deeds for property 

remaining subject to the lien. If you are not applying under 

6325(b)(1) check the “NA” box.

Section 9 – Appraisal and Valuations

1. Check the “Attached” box after “Required Appraisal” 

indicate whether you have attached the required 

appraisal by a disinterested third party. This is typically a 

professional appraisal providing neighborhood analysis; 

description of the site; description of the improvements; 

cost approach; comparable sales; definition of market 

value; certification; contingent and limiting conditions; 

interior and exterior photos of the property; exterior photos 

of comparable sales used; comparable sales location map; 

sketch of subject property showing room layout; flood map 

and qualifications of the appraiser.

2. Check the appropriate box under the “Plus One of the 

Following Additional Valuations” section to indicate which 

other type of property value verification is attached with 

your application.

Note: For applications under IRC 6325(b)(1), valuation 

information described above must also be provided for 

property remaining subject to lien.
Note: For property being sold at public auction, provide 

the date and place of the sale, the proposed amount for 

which the property will be sold, and a statement that the 

United States will be paid in the proper priority from the 

proceeds.

Section 10 − Federal Tax Liens

This section is important when the applicant and the taxpayer 

are different. If the applicant and the taxpayer are the same, this 

section may be skipped.

1. Check the “attached” box if you have attached copies of 

the liens with your application.

2. If you checked the “no” box list the System Lien 

Identification Number (SLID) found in the top right hand 

box of the lien document, if available. If you do not have 

the number(s) enter “unknown” in the first box.

Section 11 − Sales Contract/Purchase Agreement

1. Check the box indicating whether the proposed sales 

contract or purchase agreement is attached.

2. If you checked the “no” box, describe how the taxpayer 

named on the lien will be divested of their interest in the 

property or why they have no interest in the property.

Section 12 − Title Report

1. Check the box indicating whether the title report is 

attached.

2. If you checked the “no” box, use the space provided to list 

any encumbrances (liens or claims) against the property 

that came into existence before the United States’ lien 

interest or which have priority over the lien. Include name 

and address of holder; description of encumbrance, 

e.g., mortgage, state lien, etc.; date of agreement; 

original amount and interest rate; amount due at time 

of application; and family relationship of the holder, if 

applicable.

3. Attach a separate sheet with the information in item # 2 

above if there is not enough space provided on the form. 

Section 13 − Closing Statement

1. Check the box indicating whether the proposed closing 

statement is attached. This statement is often referred to 

as a HUD-1.

2. If you checked the “no” box, use the space provided to 

itemize all proposed costs, commissions, and expenses of 

any transfer or sale associated with property.

3. Attach a separate sheet with the information in item # 2 

above if there is not enough space provided on the form.

Section 14 − Additional Information

1. Check the box indicating whether you are attaching other 

documents relevant to the discharge application. This 

could include affidavits or court documents.

2. Check the “no” box if you do not have any additional 

documentation. 

Section 15 − Escrow Agreement

1. Check the box indicating whether you are attaching a 

draft escrow agreement. This is only applicable if you are 

applying under 6325(b)(3). 

2. An escrow agreement must specify type of account, 

name and depositary for account, conditions under which 

payment will be made, cost of escrow, and the name 

and address of any party identified as part of the escrow 

agreement.

Section 16 − Waiver

This section applies only if you are:

• The property owner, but 

• Not liable for the tax debt (i.e. not named on the lien), and 

• Applying under 6325(b)(2)(A).

By checking the “Waive” box you are waiving the option to 

have the payment treated as a deposit under section 6325(b)(4) 

which has the accompanying right to request a return of funds 

and to bring an action under section 7426(a)(4).

If you check the “no” box, your application will automatically 

be considered under 6325(b)(4) which provides for return of 

deposited funds and a court challenge under 7426(b)(4).

Section 17 − Declaration

The applicant or their authorized Power of Attorney signs 

the application form. You must sign your application under 

penalties of perjury attesting to having examined the 

application, accompanying schedules or documents, exhibits, 

affidavits, and statements and declaring to the best of your 

knowledge and belief that it is true, correct and complete.

Frequently Asked Questions

Q1: When do I make a payment? 

The Internal Revenue Code section under which the certificate 

of discharge will be issued or granted determines the details 

regarding making a payment.

• Discharge under 6325(b)(1) or 6325(b)(2)(B) does not 

require a payment. 

• Discharge under 6325(b)(2)(A) requires a payment, but do 

not send a payment with the application. The Advisory 

Group Manager will notify you, after determining the 

amount due, when to send payment. 

NOTE: If a mortgage foreclosure is anticipated, the 

application is made under section 6325(b)(2)(A) or 6325(b)(2)(B). 

A determination will be made that either an amount is required 

for discharge or the United States’ interest is valueless.

In the case of foreclosure you will receive, within 30 days of the 

receipt of a complete and approved application, a conditional 

commitment letter for a certificate of discharge. 

NOTE: Relocation Expenses - If a discharge under 6325(b)(2)

(A) or 6325(b)(2)(B) is issued and if the sale is of the principal 

residence, the taxpayer may be eligible for a relocation expense 

allowance because of an inability to pay. The relocation 

expense allowance is subject to limitations. To apply for 

the allowance complete and submit Form 12451, “Request 

for Relocation Expense Allowance” with the application for 

discharge.

Discharge under 6325(b)(3) requires a payment, but do not 

send a payment with the application. First, the draft escrow 

agreement must be submitted.
Second, the Advisory Group Manager approves the escrow 

agent selected by the applicant; any reasonable expenses 

submitted as incurred in connection with the sale of the 

property; the claim amounts and priorities, and the distribution 

timing of the fund.

Third, the agreement is finalized and contains signatures of all 

parties involved including Advisory Group Manager prior to the 

discharge being issued.

Note: The escrow account must be funded before payment of 

any claim or lien through money paid by the applicant or from 

the sale proceeds.

Discharge under 6325(b)(4) requires a bond or deposit but do 

not send one with the application. The Advisory Group manager 

must first determine the amount of bond or deposit needed 

for the discharge and determine that the bond company, if 

applicable, is from the approved list.

Q2: What is an acceptable form of payment?

Make payments in cash or by the following types of checks: 

certified; cashiers; or treasurer’s check. The check must be 

drawn on any bank or trust company incorporated under the 

laws of the United States, or of any state, or possession of 

the United States. Payment can also be made using a United 

States postal, bank, express or telegraph money order.

Important! If you pay by personal check, issuance of the 

certificate of discharge will be delayed until the bank honors the 

check.

Q3: Who makes the decision to issue a Certificate of 

Discharge?

In all cases Advisory staff will review and verify the information 

provided, determine whether a certificate of discharge should 

be issued, and contact you with any questions. Advisory may 

contact you, your representative, or any person relative to the 

transaction for additional information. 

The Advisory Group Manager has the responsibility to review 

and approve the determination and let you know the outcome. 

If approved, you will receive a conditional commitment letter.

Q4: When will I receive the Certificate of Discharge?

The Internal Revenue Code under which the certificate of 

discharge will be issued or granted and the time at which you 

are divested of your interest in the property determines when 

you will receive the certificate. 

• Under 6325(b)(1) you will receive the certificate when it is 

determined the remaining property meets the criteria of the 

provision.

• Under 6325(b)(2)(A) you will receive the certificate after 

IRS receives payment of the agreed upon amount in partial 

satisfaction of the tax liability, proof that the taxpayer has 

been divested of title, and receipt of a copy of the final 

settlement statement.

• Under 6325(b)(2)(B) you will receive the certificate when 

it is determined that the government’s interest in the 

property is valueless, the IRS has received proof that the 

taxpayer has been divested of title, and a copy of the final 

settlement statement.

NOTE: Under provisions 6325(b)(2)(A) and 6325(b)(2)(B) at 

the conclusion of a mortgage foreclosure the certificate will 

be issued in accordance with the terms of the conditional 

commitment letter. Also see, Publication 487, How to Prepare 

an Application Requesting the United States to Release Its 

Right to Redeem Property Secured by a Federal Tax Lien.

• Under 6325(b)(3) you will receive the certificate when the 

amount of the government’s interest in the property has 

been placed in the approved escrow account.

• Under 6325(b)(4) you will receive the certificate when the 

amount equal to the government’s interest in the property 

is received or an approved bond has posted.

Q5: What happens if my application is denied?

If your application is denied, you will receive Form 9423, 

Collection Appeal Request and Publication 1660, Collection 

Appeal Rights, with an explanation of why your application was 

denied.

Privacy and Paperwork Reduction

Act Notice 

The Privacy act of 1974 says that when we ask you for 

information about yourself, we must first tell you our legal right 

to ask for the information, why we are asking for it, and how it 

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 

law.

We ask for the information on this form to carry out the Internal 

Revenue laws of the United States. This information requested 

on this form is needed to process your application and to 

determine whether the federal tax lien can be discharged. You 

are not required to apply for discharge; however, if you want the 

federal tax lien to be discharged, you are required to provide 

the information requested on this form. Section 6109 requires 

you to provide the requested identification numbers. Failure to 

provide this information may delay or prevent processing your 

application; providing any false information may subject you to 

penalties.

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 

number 1545-2174. The estimated burden for those who file 

this form is shown below.

• Recordkeeping 2 hr., 45 min.

• Learning about the law or the form 2 hr.

• Preparing the form 1 hr., 30 min.

• Copying, assembling, and sending the form to the IRS 85 

min.

Routine uses of this information include giving it to the 

Department of Justice for civil and criminal litigation, and 

to cities, states, the District of Columbia, and United States 

commonwealths and possessions for use in administering their 

tax laws. Advisory may contact you, your representative, or any 

person relative to the transaction for additional information. 

We may also disclose this information to other countries 

under a tax treaty, to federal and state agencies to enforce 

federal nontax criminal laws, or to federal law enforcement and 

intelligence agencies to combat terrorism.