TAX LIEN DISCHARGE REQUEST

IRS FORM 14135 SUBMISSION PACKAGE

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APPLICANT INFORMATION

Taxpayer/Applicant Name: [FULL LEGAL NAME]

Social Security Number / EIN: [SSN/EIN]

Current Address:
[STREET ADDRESS]
[CITY, STATE ZIP]

Daytime Telephone: [PHONE NUMBER]

Email Address: [EMAIL]

Total Federal Tax Liability: $[AMOUNT]

Notice of Federal Tax Lien Date: [DATE]

NFTL Recording Information:
- County/State: [LOCATION]
- Recording Date: [DATE]
- Recording Number: [NUMBER]

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COVER LETTER

[DATE]

Internal Revenue Service
Advisory Group Manager
[IRS ADDRESS - OBTAIN FROM LOCAL IRS OFFICE]

Via Certified Mail No.: [TRACKING NUMBER]

Re: Application for Certificate of Discharge of Property from Federal Tax Lien
Taxpayer: [TAXPAYER NAME]
Social Security Number/EIN: [NUMBER]
Tax Period(s): [PERIOD(S)]
Property Address: [PROPERTY ADDRESS]
Proposed Transaction Date: [DATE]

Dear Sir or Madam:

Enclosed please find a complete application for a Certificate of Discharge of Property from Federal Tax Lien pursuant to IRC § 6325(b). This application is submitted at least 45 days prior to the proposed sale/transaction date.

I am requesting that the IRS discharge its federal tax lien from the property located at [PROPERTY ADDRESS] to allow for [DESCRIBE PURPOSE, e.g., "the sale of the property to a third-party buyer"].

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SECTION 1: TYPE OF DISCHARGE REQUESTED

IRC § 6325(b) provides several bases for discharge. Select the applicable basis:

☐ IRC § 6325(b)(1) - Liability Satisfied or Unenforceable
The entire tax liability has been paid or has become legally unenforceable

☐ IRC § 6325(b)(2)(A) - Interest of United States Has No Value
The IRS's interest in the property has no value. The property is worth less than the total of liens senior to the federal tax lien.

Value of property: $[VALUE]
Total of senior liens: $[AMOUNT]
IRS interest value: $[0 or negative]

☐ IRC § 6325(b)(2)(B) - United States Paid in Full
The United States will receive an amount equal to its full interest in the property.

Fair market value of property: $[VALUE]
Senior liens: $[AMOUNT]
IRS interest: $[AMOUNT]
Amount to be paid to IRS: $[AMOUNT]

☐ IRC § 6325(b)(3) - Property Value Remains at Least Double the Liability
The remaining property subject to the lien will have a fair market value at least double the sum of the federal tax liability and all other liens.

Value of remaining property: $[VALUE]
Sum of tax liability + other liens: $[AMOUNT]
Ratio: [RATIO]:1

☐ IRC § 6325(b)(4) - Third Party Payment
A third party pays the fair market value of the United States' interest.

Third party: [NAME]
Amount to be paid: $[AMOUNT]

☐ Bond Accepted
A bond is accepted in lieu of the interest of the United States.

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SECTION 2: PROPERTY INFORMATION

Property to be Discharged:

Property Type:
☐ Primary Residence
☐ Investment Property
☐ Commercial Property
☐ Vacant Land
☐ Vehicle
☐ Other: [DESCRIBE]

Property Address:
[FULL ADDRESS]

Legal Description:
[LEGAL DESCRIPTION OF PROPERTY]

Parcel/Tax ID Number: [NUMBER]

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SECTION 3: PROPERTY VALUATION

Fair Market Value of Property:

Method of Valuation:
☐ Appraisal by licensed appraiser
- Appraiser Name: [NAME]
- Appraisal Date: [DATE]
- Appraised Value: $[VALUE]

☐ Tax Assessment
- Assessment Year: [YEAR]
- Assessed Value: $[VALUE]

☐ Sales Contract
- Contract Date: [DATE]
- Contract Price: $[AMOUNT]

☐ Broker's Price Opinion
- Broker Name: [NAME]
- Date: [DATE]
- Value: $[VALUE]

☐ Other: [DESCRIBE]

Declared Fair Market Value: $[VALUE]

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SECTION 4: ENCUMBRANCES ON PROPERTY

All liens and encumbrances on the property:

Priority	Lienholder	Type	Date Recorded	Current Balance
1	[LIENHOLDER]	[TYPE]	[DATE]	$[AMOUNT]
2	[LIENHOLDER]	[TYPE]	[DATE]	$[AMOUNT]
3	United States (IRS)	Federal Tax Lien	[DATE]	$[AMOUNT]
4	[LIENHOLDER]	[TYPE]	[DATE]	$[AMOUNT]

Total Senior Liens (those with priority over the federal tax lien): $[AMOUNT]

United States Interest Calculation:

Item	Amount
Fair Market Value	$[VALUE]
Less: Senior Liens	$[AMOUNT]
Less: Costs of Sale (estimated)	$[AMOUNT]
Net Value Available for Federal Tax Lien	$[AMOUNT]

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SECTION 5: PROPOSED TRANSACTION

Type of Transaction:

☐ Sale to Third Party
- Buyer Name: [NAME]
- Relationship to Taxpayer: ☐ Unrelated ☐ Related (explain: [RELATIONSHIP])
- Proposed Sale Price: $[AMOUNT]
- Proposed Closing Date: [DATE]

☐ Refinance
- Lender: [LENDER]
- Loan Amount: $[AMOUNT]
- Purpose: [PURPOSE]

☐ Other: [DESCRIBE]

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SECTION 6: PROPOSED DISTRIBUTION OF PROCEEDS

Estimated Closing Statement:

Line	Description	Debit	Credit
1	Sales Price		$[AMOUNT]
2	Less: First Mortgage Payoff	$[AMOUNT]
3	Less: Second Mortgage Payoff	$[AMOUNT]
4	Less: Real Estate Commissions	$[AMOUNT]
5	Less: Title Insurance	$[AMOUNT]
6	Less: Recording Fees	$[AMOUNT]
7	Less: Transfer Taxes	$[AMOUNT]
8	Less: Other Closing Costs	$[AMOUNT]
9	Amount to IRS	$[AMOUNT]
10	Amount to Seller (Taxpayer)	$[AMOUNT]
	TOTAL	$[TOTAL]	$[TOTAL]

Expected Proceeds to Be Paid to IRS: $[AMOUNT]

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SECTION 7: BUYER/PURCHASER INFORMATION (IF APPLICABLE)

Purchaser Name: [NAME]

Purchaser Address:
[ADDRESS]

Purchaser Telephone: [PHONE]

Purchaser Email: [EMAIL]

Relationship to Taxpayer:
☐ No relationship (arm's length transaction)
☐ Family member: [RELATIONSHIP]
☐ Business associate: [DESCRIBE]
☐ Other: [DESCRIBE]

If related-party sale, explain the business purpose:
[EXPLANATION]

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SECTION 8: REQUIRED DOCUMENTATION CHECKLIST

Property Documentation:
☐ Copy of deed to property
☐ Current title report (within 30 days)
☐ Property appraisal (if available)
☐ Tax assessment
☐ Copies of all recorded liens
☐ Legal description or survey

Tax Lien Documentation:
☐ Copy of Notice of Federal Tax Lien
☐ IRS Account Transcript

Transaction Documentation:
☐ Sales contract/purchase agreement
☐ Proposed closing statement/settlement statement
☐ Buyer's proof of funds or loan commitment
☐ Real estate listing agreement (if applicable)

Financial Documentation:
☐ Payoff letters from all lienholders
☐ Estimated closing costs

Other Documentation:
☐ Completed Form 14135
☐ Form 2848, Power of Attorney (if represented)
☐ Other: [DESCRIBE]

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SECTION 9: CERTIFICATION REGARDING SALE PRICE

I certify that:

☐ The proposed sale price of $[AMOUNT] represents the fair market value of the property

☐ The sale is an arm's length transaction between unrelated parties

OR

☐ The sale is to a related party, but the price reflects fair market value because:
[EXPLAIN]

☐ I have not received and will not receive any consideration for this property other than what is shown in the sales contract

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SECTION 10: APPLICANT CERTIFICATION

Under penalties of perjury, I declare that I have examined this application, including all accompanying documents and statements, and to the best of my knowledge and belief, they are true, correct, and complete.

I understand that the IRS will issue a Certificate of Discharge only after verifying the information provided and determining that the statutory requirements are met.

Applicant Signature: ___________________________________

Printed Name: [TAXPAYER NAME]

Date: [DATE]

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SECTION 11: THIRD-PARTY CONTACT INFORMATION

Title Company/Settlement Agent:
- Company: [COMPANY NAME]
- Contact Person: [NAME]
- Address: [ADDRESS]
- Phone: [PHONE]
- Email: [EMAIL]

Real Estate Agent (if applicable):
- Name: [NAME]
- Company: [COMPANY]
- Phone: [PHONE]
- Email: [EMAIL]

Buyer's Attorney (if applicable):
- Name: [NAME]
- Firm: [FIRM]
- Phone: [PHONE]
- Email: [EMAIL]

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SECTION 12: REPRESENTATIVE INFORMATION (IF APPLICABLE)

Representative Name: [NAME]

Firm Name: [FIRM]

Address:
[ADDRESS]

Telephone: [PHONE]

Email: [EMAIL]

CAF Number: [CAF NUMBER]

☐ Form 2848, Power of Attorney and Declaration of Representative is attached

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MAILING INSTRUCTIONS

Submit Form 14135 and all supporting documentation to:

Contact your local IRS Advisory Group Manager. The application should be submitted to the IRS office that filed the Notice of Federal Tax Lien.

Locate your local IRS office at:
www.irs.gov/help/contact-my-local-office-in-person

IMPORTANT: Submit at least 45 days before the proposed closing date

Send via Certified Mail with Return Receipt Requested

Certified Mail Number: ______________________
Date Mailed: ______________________

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PROCESSING TIMELINE

1. Submission: At least 45 days before closing date

2. Completeness Review: IRS reviews for required documents

3. Additional Information: IRS may request more documentation

4. Determination: IRS approves or denies within 45 days (typically)

5. Certificate Issuance: If approved, Certificate of Discharge issued

6. Closing: Proceed with transaction and remit payment to IRS

7. Recording: File Certificate of Discharge with local recorder

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IF APPLICATION IS DENIED

If the IRS denies your discharge request:

1. Denial Letter: You will receive a written explanation

2. Appeal Rights: File Form 9423, Collection Appeal Request

3. Publication 1660: Review Collection Appeal Rights

4. Alternatives:
   - Revise application with additional information
   - Consider lien subordination instead
   - Negotiate with IRS on payment amount
   - Full payment of liability

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ESCROW OF PROCEEDS

If closing before IRS issues the Certificate:

The IRS may agree to issue a Certificate of Discharge if the net proceeds are held in escrow pending issuance of the certificate.

☐ Request for escrow arrangement attached

Escrow Agent:
- Name: [NAME]
- Company: [COMPANY]
- Address: [ADDRESS]

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IMPORTANT NOTES

1. 45-Day Requirement: Submit application at least 45 days before closing. Late submissions may delay or prevent the transaction.

2. Fair Market Value: The IRS will independently verify the property's value. If they believe the value is higher, they may require additional payment.

3. Related-Party Sales: Sales to family members or related parties receive extra scrutiny. Be prepared to demonstrate fair market value.

4. Payment at Closing: Ensure the closing statement reflects payment to the IRS. The title company should make payment directly to the IRS.

5. Remaining Liability: Discharge of property does not eliminate the tax liability. The taxpayer remains responsible for any unpaid balance.

6. Multiple Properties: If you have multiple properties with liens, each discharge requires a separate application.

7. No User Fee: There is currently no fee for discharge applications.

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This template is provided for informational purposes and should be reviewed by qualified tax counsel before submission to the IRS.