IRS Form 14135, also known as the “Application for Certificate of Discharge of Property from Federal Tax Lien,” is a legal document used to request the discharge of a federal tax lien from a specific property. This form is typically used when an individual or business has satisfied their tax debt and wants to remove the lien from their property so that they can sell or refinance it.

A federal tax lien is a legal claim the government places on an individual or business’s property when they owe unpaid taxes. This lien gives the government a legal right to the property, which can make it difficult for the property owner to sell or refinance it. Once a lien is in place, it will show up on the property owner’s credit report, making it difficult for them to obtain new credit.

To apply for a certificate of discharge, the individual or business must first satisfy their tax debt. This means they must pay the total amount of the debt, including any interest and penalties. Once the debt is paid in full, the individual or business can submit Form 14135 to the IRS.

When submitting Form 14135, the individual or business must provide the IRS with detailed information about the property for which they request the lien to be discharged. This includes the property’s address, legal description, and the lien date. The individual or business must also provide proof of payment of the tax debt, such as a receipt or bank statement.

Once the IRS receives the form, they will review it and determine if the individual or business is eligible for a certificate of discharge. If the individual or business is eligible, the IRS will issue a certificate of discharge and mail it to the individual or business. The certificate will also be filed with the county recorder’s office, removing the lien from the property’s title.

It’s important to note that Form 14135 should not be confused with Form 12277, which is used to request the withdrawal of a filed Notice of Federal Tax Lien (NFTL). Form 12277 is typically used when a taxpayer has entered into an installment agreement, has requested a Collection Due Process hearing, or has entered into a settlement with the IRS. Form 14135 is used after the taxpayer fully satisfies their tax liability and the IRS has released the lien.

Internal Revenue Code (IRC) section 6325(b) provides for the discharge of property from a federal tax lien when the liability for which the lien was imposed has been fully satisfied or becomes legally unenforceable. IRC section 6325(a) provides that a release of a federal tax lien is effective when filed, while a discharge of property from a federal tax lien is effective when the certificate of discharge is issued.

In conclusion, IRS Form 14135 is an important document that allows individuals and businesses to request the discharge of a federal tax lien from their property. By submitting this form and providing the necessary documentation, an individual or business can have the lien removed from their property and move forward with selling or refinancing it. It’s important to note that the form should only be submitted after the tax debt has been fully satisfied and the IRS has released the lien.