To fill out IRS Form 14135, the Application for Certificate of Discharge of Property from Federal Tax Lien, you identify the taxpayer and property, check the box for the legal basis you’re applying under, describe the sale and expected proceeds, and attach an appraisal, a title report, and a proposed closing statement. The completed package goes to a single IRS address in Florence, Kentucky, or through your IRS Online Account. A discharge lifts the federal lien from one specific property so a sale or refinance can close with clean title; the underlying tax debt stays, and the lien remains attached to everything else you own.1Internal Revenue Service. Form 14135 – Application for Certificate of Discharge of Property From Federal Tax Lien
Pick Your Legal Basis Before You Start Writing
Section 7 of the form asks you to check a box identifying which provision of 26 USC 6325(b) you’re applying under. That choice controls which attachments the IRS expects and how the numbers on the form have to line up. Choosing a basis the facts don’t support is the fastest way to get the application sent back.
You have four routes as the taxpayer:
- 6325(b)(1), the double-value rule. The IRS can discharge the property if the fair market value of your remaining assets still subject to the lien is at least double the unpaid tax plus any liens ahead of the federal lien. You’ll need valuations for the property staying behind, not just the property being sold.
- 6325(b)(2)(A), partial payment. You pay the IRS an amount at least equal to the value of the government’s interest in the property. The IRS calculates that interest as the property’s value minus senior liens and proposed settlement costs. This is the usual choice for a routine home sale where net proceeds go to the IRS at closing.
- 6325(b)(2)(B), no-value interest. If the mortgage and other senior liens exceed the property’s fair market value, the government’s interest is zero and the IRS can discharge the property with no payment. You still have to document the value and the senior balances to prove the math.
- 6325(b)(3), substitution of sale proceeds. The sale closes and the proceeds go into an escrow fund; the federal lien attaches to the fund instead of the property. You submit a proposed escrow agreement with the application.
A fifth option, 6325(b)(4), exists only for third-party owners and is covered further down.
Working Through the Numbered Sections
Download the current version of Form 14135 from irs.gov. The sections are numbered, and skipping any of them delays processing.
Sections 1 and 2: Taxpayer and Applicant
Enter the taxpayer’s name exactly as it appears on the Notice of Federal Tax Lien. A middle initial on the lien but missing on your form is enough to slow the file. Include the last four digits of the Social Security number, or the full Employer Identification Number, shown on the notice. If you are the taxpayer, check the box in Section 2 confirming that. If you’re not — for example, you bought property that turned out to carry someone else’s lien — leave the box unchecked and attach a copy of the lien notice.1Internal Revenue Service. Form 14135 – Application for Certificate of Discharge of Property From Federal Tax Lien
Sections 3 Through 5: Representative and Contacts
Section 3 is for a tax professional, attorney, or other representative handling the application. A valid Form 2848 power of attorney has to be on file with the IRS for that person to discuss your account. Section 4 asks for the best contact person and phone number for questions about the application itself. Section 5 asks for the title or escrow company handling the closing, including a contact name and phone number, because the IRS will coordinate with them directly once a decision is made.
Section 6: Sale Information and Proceeds
Enter the proposed sale price and the amount of proceeds the IRS can expect to receive toward the tax debt. If senior liens absorb all the equity and the IRS will receive nothing, put “N/A” for expected proceeds. Applications under 6325(b)(2)(A) need the arithmetic to show: sale price, minus senior encumbrances, minus proposed settlement costs, equals the government’s interest.3Internal Revenue Service. Publication 783 – Instructions on How to Apply for a Certificate of Discharge From Federal Tax Lien
Section 7: Legal Basis
Check the box matching the subsection you’re applying under. If you’re a third-party owner choosing between 6325(b)(2) and 6325(b)(4), read Section 16 at the bottom of the form carefully. That section asks whether you waive the judicial remedy available under 6325(b)(4). Waiving it means you can’t later sue to recover a deposit if you disagree with the IRS’s valuation.
Section 8: Property Description
For real property, enter the street address and attach a legible copy of the deed or title showing the full legal description. A street address on its own is not enough; the IRS needs the recorded legal description with lot numbers, subdivision, and boundary references. For personal property, list the address where the item is located along with a description specific enough to identify it.
Attachments the Application Needs
The form is short. The attachments are where the work sits, and missing or thin documentation is the main reason applications stall.
- Professional appraisal (Section 9). A valuation completed by a disinterested third party with no financial stake in the sale. For residential real estate, that means a licensed appraiser working from comparable sales. A standard residential appraisal typically runs around $300 to $425. Use a recent appraisal; a stale one will draw a request for an update.
- Copy of the lien (Section 10). Required if you’re not the taxpayer. If you are the taxpayer, you can list the lien’s serial number from the top right corner of the notice instead of attaching the document.
- Title report (Section 12). A current title search listing every encumbrance on the property: mortgages, home equity lines, judgment liens, property tax liens, and any other recorded interests. For each, include the creditor’s name and address, the type of encumbrance, the recording date, the original loan amount and interest rate, and the current balance. Recording dates establish who gets paid first.
- Proposed closing statement (Section 13). An itemized settlement statement covering real estate commissions, title insurance, transfer taxes, recording fees, and prorated property taxes. The IRS uses it to confirm that the distribution follows federal priority rules and that no proceeds are being diverted from the tax debt.
- Escrow agreement. Required only if you’re applying under 6325(b)(3). Submit a proposed agreement showing how the sale proceeds will be held.
Everything on the closing statement needs to reflect an arm’s-length sale at fair market value. A sale to a relative or business associate at a below-market price will draw close scrutiny and can lead to a denial.
Where to Submit
Mail the completed form and attachments to the centralized IRS address:
IRS Advisory Consolidated Receipts
7940 Kentucky Drive, Stop 2850A
Florence, KY 41042-2915
The IRS also accepts applications through your IRS Online Account at irs.gov. Publication 4235 lists Collection Advisory office contact information by state if you need to check the status of a pending application or discuss a lien-related issue after filing.4Internal Revenue Service. Collection Advisory Offices
What Happens After You Submit
An IRS Advisory employee reviews the application and attachments. There is no published processing timeline. Plan for several weeks at minimum, longer if the file is incomplete or the IRS asks for additional information. If a closing date is approaching, submit well in advance and make sure the title company knows the schedule depends on the IRS response.
The Conditional Commitment Letter
If the application meets the requirements, the IRS issues a conditional commitment letter (Letter 402 or Letter 403) rather than a certificate. The commitment letter spells out what must happen before the certificate will be released: typically that the sale closes, the agreed payment reaches the IRS in certified funds, and the final settlement statement matches what was proposed.5Internal Revenue Service. 5.12.10 Lien Related Certificates
You have 30 calendar days from the date of the commitment letter to submit closing documents and payment. If a closing gets delayed, contact the Advisory office and ask for an extension before the 30 days run out. Missing the deadline without an extension closes the case, though you can restart the process if the underlying facts haven’t substantially changed.
The Certificate of Discharge
Once the IRS confirms the recorded deed, reconciles the final settlement statement against the proposed one, and verifies the payment, it issues the Certificate of Discharge on one of the Form 669 series documents (669-A, 669-B, or 669-C, depending on the legal basis used). Record the certificate in the same county office where the original lien was filed so the public record shows the property is clear.6Internal Revenue Service. 5.12.1 Lien Program Overview
If You’re Not the Taxpayer
You don’t have to be the taxpayer to file Form 14135. If you own property encumbered by someone else’s federal lien, leave the “also the taxpayer” box in Section 2 unchecked, attach a copy of the lien, and fill in both the taxpayer’s information (Section 1) and your own (Section 2).
Third-party owners have an option taxpayers don’t. Under 6325(b)(4), you can force a discharge by depositing cash or posting a bond equal to the government’s determined interest in the property. The statute uses “shall”: once you make the deposit, the IRS must issue the certificate. If you believe the IRS overvalued its interest, you can file a civil action in federal court to recover the excess.2Office of the Law Revision Counsel. 26 USC 6325 – Release of Lien or Discharge of Property
Applying under (b)(2) may result in a lower required payment if the IRS agrees with your valuation, but you give up the right to challenge the IRS’s number in court. Applying under (b)(4) preserves that judicial remedy but requires an upfront deposit based on the IRS’s number. Section 16 of the form is where you make that choice.1Internal Revenue Service. Form 14135 – Application for Certificate of Discharge of Property From Federal Tax Lien
When Form 14135 Is the Wrong Tool
Two other lien relief options solve different problems. Subordination doesn’t remove the lien; it lets another creditor, usually a mortgage lender, move ahead of the IRS in payment priority. That’s the right tool when you’re refinancing and the lender won’t close because of the federal lien. Withdrawal removes the public Notice of Federal Tax Lien from the record but leaves the underlying debt in place; it’s available after a lien is released following full payment, or under Fresh Start if you owe $25,000 or less and enter a Direct Debit installment agreement that will pay the balance within 60 months.7Internal Revenue Service. Understanding a Federal Tax Lien
Form 14135 is the right form only when you need clean title on a specific property for a sale.
If the IRS Denies Your Application
A denial can be challenged through the Collection Appeals Program, and the deadlines are short. Start by requesting a conference with the manager of the IRS employee who denied the application. If that doesn’t resolve it, file Form 9423, Collection Appeal Request, to escalate to the IRS Independent Office of Appeals. You must notify the Collection office within two business days of the manager conference that you plan to file Form 9423, and the form itself must be received or postmarked within three business days of that conference. Miss either deadline and the IRS can resume collection activity.8Internal Revenue Service. Collection Appeal Request
On Form 9423, spell out why the denial was wrong. Whether the IRS miscalculated the government’s interest, used an outdated valuation, or applied the wrong legal standard, name the specific error and propose a solution. Vague disagreement won’t move the file. Submit the form to the same Collection office that handled the original application.