Quick overview

A Certificate of Release of Federal Tax Lien (often called a “release”) is the paperwork the IRS files with the local recording office to show a federal tax lien is no longer in effect. Releases matter because a lien on public records can block property transfers, harm loan approvals, and depress credit opportunities. The IRS generally files a release after full payment or when another legal condition (for example, expiration of the statutory lien period) ends the lien. (Source: IRS — Certificate of Release of Federal Tax Lien: https://www.irs.gov/businesses/small-businesses-self-employed/certificate-of-release-of-federal-tax-lien)

When does the IRS issue a Certificate of Release?

The IRS will typically issue a Certificate of Release of Federal Tax Lien when one of these events occurs:

  • You pay the tax debt in full, including any assessed penalties and interest.
  • The 10‑year statute of limitations for collection expires and the lien is no longer viable.
  • A court order or tax settlement (including bankruptcy) removes the IRS’s claim.
  • The IRS agrees to a discharge, subordination, or withdrawal under special circumstances (different outcomes: discharge/subordination/withdrawal do not all mean the same as a release).

Note: A withdrawal is different from a release. A withdrawal (under the IRS Fresh Start program or other policies) removes the public Notice of Federal Tax Lien as if it had not been filed; a release shows the lien existed but is now ended. For details on withdrawals and other lien remedies, see our guide on how tax liens affect credit and steps to request a withdrawal.

Step-by-step process to obtain a Certificate of Release

Below is a practical, field-tested workflow I use with clients. Follow these steps to reduce delays.

  1. Confirm the debt is fully satisfied
  • Check your IRS account transcript or the IRS online account to confirm the balance is zero and payments (including penalties and interest) are posted. You can also request a Record of Account from the IRS.
  • If you paid with a third party (closing escrow, bank, or title company), get documentation proving the payment was applied to the correct tax period and recorded by the IRS.
  1. Allow the IRS short processing time
  • After final payment posts, the IRS commonly files a release within about 30 days. This is the typical timeframe the IRS provides for processing lien releases after the account is closed, but times can vary based on local processing and the IRS workload. (Source: IRS guidance)
  1. If the release doesn’t appear automatically, request confirmation
  • Contact the IRS office that handled the lien (the address/phone on the Notice of Federal Tax Lien) or call the IRS Collection office at the published number for your area. Ask for:
    • A status of the lien release filing, and
    • A certified copy of the Certificate of Release once filed.
  • Keep records of who you spoke with, the date, and any confirmation numbers.
  1. Ask the IRS for a certified copy (if needed for lenders or escrow)
  • Request the IRS to send a certified copy of the Certificate of Release directly to you, your title company, lender, or county recorder. Lenders and title companies commonly require a certified copy to clear title or close transactions.
  1. Check local recording offices and credit reports
  • Verify with the county recorder/registrar of deeds that the release appears in the land records where the NFTL was originally filed.
  • If the lien remains on your credit reports after the release appears in public records, dispute the item with the major credit bureaus and provide the recorded release as proof. See steps below for disputing credit-report issues.
  1. If you still don’t have a release: file an IRS request in writing
  • Write a short cover letter, include a copy of the settlement/payment documentation, and send to the IRS address on the lien notice. Request issuance and filing of the Certificate of Release and ask for a certified copy to be mailed.

Documents and information to gather before you request a release

  • Copy of the Notice of Federal Tax Lien (NFTL) or the name of the county/recorder where it was filed.
  • Proof of payment(s): canceled checks, bank wire confirmations, escrow closing statements, IRS payment confirmations.
  • Your Social Security Number or EIN, tax years involved, and IRS tax form numbers (e.g., Form 1040 for individuals) related to the debt.
  • Copy of your IRS account transcript or Record of Account showing the zero balance.
  • Contact details of your lender, title company, or county recorder if you want them to receive the certified release directly.

Timeline and what to expect

  • Typical processing after full payment: about 30 days for IRS filing, but it can take longer during peak periods.
  • County recording: once the IRS files the Certificate of Release, the county recorder may take additional days to index the document in local records.
  • Credit reporting: credit bureaus may take one to two billing cycles (or longer) to update credit reports after the release posts to public records. If they don’t, you can file disputes with documentation.

If the lien isn’t released after payment

Use this checklist:

  • Reconfirm the IRS account shows zero balance for the specific tax periods.
  • Contact the IRS office listed on your lien notice and ask for status or a certified copy.
  • Send a written request with supporting documents to the IRS office handling your case.
  • If the lien still isn’t released, consider working with a tax professional (CPA, enrolled agent, or tax attorney) to escalate the case or submit a Taxpayer Advocate Service request if you face significant financial harm. The Taxpayer Advocate Service is an independent organization within the IRS that helps resolve administrative problems (see IRS site for contact info).

How a released lien affects credit and title transactions

A recorded release clears the public land records and helps lenders or title companies clear title. If a lien caused difficulty with loan approvals or property sales, provide the certified release to the lender or title company to remove the encumbrance. If the lien continues to appear on your credit reports after the release is recorded, file disputes with the credit bureaus and send the recorded release and a brief cover letter. For more on how liens appear on credit reports and withdrawal options, see our article How Tax Liens Affect Credit and Steps to Request a Withdrawal.

Alternatives and related IRS actions

  • Withdrawal: The IRS can withdraw a Notice of Federal Tax Lien in certain situations (e.g., to facilitate collection or because a lien was filed prematurely). A withdrawal is often more helpful for credit because it removes the public notice. Learn more in our linked guide on withdrawals and credit. (Internal link: How Tax Liens Affect Credit and Steps to Request a Withdrawal — https://finhelp.io/glossary/how-tax-liens-affect-credit-and-steps-to-request-a-withdrawal/)
  • Discharge, subordination: A discharge removes the lien from specific property; subordination allows another creditor to take priority over the IRS lien. These are case‑by‑case remedies that require separate IRS procedures.
  • Fresh Start and other IRS programs: The IRS’s Fresh Start offerings and installment agreements may affect lien filing and resolution; consult IRS guidance or a professional for options.

For a plain-language walk-through of release, discharge, and other remedies, see our practical step-by-step guide on releasing an IRS tax lien (Internal link: How to Release an IRS Tax Lien: Steps and Requirements — https://finhelp.io/glossary/how-to-release-an-irs-tax-lien-steps-and-requirements/).

Common mistakes and how to avoid them

  • Assuming payment automatically clears all records: the IRS must file the Certificate of Release to close the public record.
  • Failing to get a certified copy: lenders and title companies often insist on a certified copy.
  • Not checking county records: the IRS may file the release in a different county from where a lender expects it—confirm the recorder’s indexing.
  • Letting time pass without follow-up: delayed action can keep the lien on record longer than necessary.

Practical letter template (short) you can use to request a certified release

[Date]
Internal Revenue Service
[Address shown on your lien notice]

Re: Request for Certificate of Release of Federal Tax Lien
Taxpayer name: [Your name or business name]
SSN or EIN: [XXX-XX-XXXX or EIN]
Tax periods: [years]

Dear Sir or Madam,

I paid the tax liability for the periods above on [date]; payment posted on [date]. Please issue and file a Certificate of Release of Federal Tax Lien for the Notice of Federal Tax Lien recorded in [County, State] on [recording date/reference]. Please send a certified copy to me at the address below and to my title company/lender at [contact info], if possible.

Enclosed: proof of payment and IRS account transcript.

Sincerely,
[Your name, address, phone, email]

When to get professional help

If you hit administrative delays, disputes about whether the debt was fully paid, or complex situations involving bankruptcy, negotiated settlements, or multiple tax periods, consult a tax professional (CPA, enrolled agent, or tax attorney). In my 15 years of practice helping people clear liens, an experienced practitioner can shorten timelines, ensure accurate filings, and coordinate with title companies and county recorders.

Authoritative sources and further reading

Disclaimer

This article is educational and intended to explain the IRS process for issuing a Certificate of Release of Federal Tax Lien. It is not personalized tax advice. For advice specific to your situation, consult a licensed tax professional, CPA, enrolled agent, or tax attorney.