The IRS can place a tax lien on your property if you don’t settle a tax liability in time and send you IRS notice 1450 that informs you how to remove a lien from each property.
Paying the tax liability is the fastest way to resolve a tax dispute, lift a lien from your property, and get a Certificate of Release.
IRS Notice 1450 shows you the steps you must take to settle an outstanding tax debt and request a certificate that lifts a tax lien from your property.
This guide to resolving tax disputes will help you understand IRS Notice 1450 and what you must do to resolve the tax dispute.
Table of Contents
What is Tax Lien?
Filing a Notice of Federal Tax Lien in the public records is one of the steps the IRS takes to collect debts from taxpayers who don’t respond to the first request to settle a tax liability.
Hence you’ll likely receive IRS Notice 1450 if you ignore Notice CP14 and fail to pay the requested amount within 21 days. A tax lien arises if you don’t meet your tax obligations three weeks after receiving an IRS notice requesting the payment of tax debt.
It gives the IRS a legal claim on your property for the amount you owe but does not indicate an immediate seizure of the property. This allows you to reach an installment agreement with the IRS or apply for an offer in compromise.
The IRS will issue a tax levy that gives the agency the right to seize property if the process of resolving a tax dispute is unsuccessful.
According to Tax Topic 201, the IRS cannot release the lien until the tax liability is paid in full, along with all fees, penalties, and interests. The IRS can lift a tax lien from your property before you satisfy your tax debt under the following conditions:
- If withdrawing a tax lien is in your and the federal government’s best interest, but only with your or your representative’s consent.
- You enter an installment agreement.
- A Notice of Federal Tax Lien was filed incorrectly.
- Lifting a tax lien helps a taxpayer settle a tax debt quicker.
The Meaning of IRS Notice 1450
Don’t forget that you can dispute the IRS’ decision to assess tax liability to your account even after you receive Notice 1450. You must submit a Collection Due Process request and present your case during the hearing.
This hearing enables you to claim the currently not collectible status or discuss the terms of an installment agreement. However, the IRS is unlikely to accept new evidence that disputes the amount you owe during this hearing.
Notice 1450 contains the information you’ll need to determine how much you owe to the IRS and satisfy the outstanding debt if you don’t want to go through the Collection Due Process.
Requesting a Payoff subheading at the top of the document tells you what to do if you still haven’t satisfied your liability. Essentially, the notice informs you that you must contact the local IRS office or go to your account on the IRS website to check the amount you owe.
Removing Tax Lien From Your Property And Obtaining The Certificate of Release
The IRS has thirty days to release the tax lien from your property after you settle an outstanding tax debt and issue the Certificate of Release, provided the liability was paid in full.
The certificate should be mailed to the recording office, and a copy should arrive at your home address. You can call or write to the Centralized Lien Operation Office if you don’t receive the certificate within thirty days of paying your tax debt.
Notice 1450 contains the contact address and the telephone numbers you can use to reach the Centralized Lien Operation office in Cincinnati, Ohio.
Please remember that the copy of the certificate you’ll receive won’t contain information regarding the official recording information.
You’ll have to reach out to the recording office where the Certificate of Release of Federal Tax Lien was filed to obtain a version of the document that contains this information.
Requesting The Certificate of Release From The IRS
Notice 1450 also provides instructions on requesting this certificate if you don’t receive it 30 days after paying the tax liability.
You must include the information below in the request:
- Your name and address.
- The date of the request.
- Copies of all Notices of Tax Lien you’d like to release.
- Justification of the reason you want to remove a tax lien.
- Proof of payment or a canceled check.
- A phone number the IRS can use to contact you if they need more information from you and the hours they’re most likely to reach you.
The IRS might conduct additional research on your account to determine if the entire debt was settled before issuing the Certificate of Release.
If the review shows you still owe taxes, you’ll receive the certificate after paying the remaining debt.
Optionally, you can contact the local IRS office if you need the Certificate of Release urgently, but you’ll have to provide the documentation which proves your tax liability was satisfied.
The IRS will issue the certificate immediately if the tax liability was paid with a certified check, official bank check, bank or postal money order, or cashier’s check. If you use other payment options, you’ll have to wait thirty days for this certificate.
Other Tax Lien Removal Options
Paying the taxes you owe is the easiest way to have a tax lien lifted from your property, but it isn’t the only way. Applying for a tax lien discharge will enable you to satisfy the outstanding debt by refinancing the property and using the funds to cover the debt.
Although it doesn’t lift the lien from a property, subordination lets ‘other creditors move ahead of the IRS.’ As a result, you may be able to secure a mortgage or a loan you can use to pay the taxes you owe to the IRS.
Ultimately, the IRS will withdraw the tax lien if it determines that the tax liability was incorrectly assigned to your account. Your tax lien withdrawal request can be approved even if you owe taxes if you meet the necessary criteria.
Frequently Asked Questions
A tax lien will expire ten years after the IRS files a Notice of Federal Tax Lien in the public records. You can acquire the Certificate of Release if you settle the tax liability during that time.
You’ll receive Notice CP504 Intent to Levy if the IRS wants to seize your property. Notice 1450 only informs you that you must pay a tax debt to remove a tax lien from your property or request a Certificate of Release if you haven’t received it thirty days after paying the outstanding debt.
The appropriate response to this notice depends on your current tax situation. Hence, you should either take steps to satisfy your tax liability, check the status of your certificate or request the certificate.
Tax liens aren’t included in consumer credit reports issued by the three largest credit bureaus since 2018.
Resolving IRS Notice 1450 Issues
You will probably deal with complex tax issues for a while by the time you get Notice 1450 from the IRS.
This notice usually reminds you that you can request the Certificate of Release of Federal Tax Lien if a copy of this certificate hasn’t been sent to you a month after you settled a tax liability.
However, you may receive this notice if you still didn’t pay the taxes you owe to the federal government. The document offers brief instructions on how to find out the exact balance due you must settle before the IRS can release a tax lien from your property.
Resolving the issues that led the IRS to send you Notice 1450 on your own can be difficult if you don’t fully understand your right and obligations. Call 866-8000-TAX or visit choicetaxrelief.com to speak with a tax professional who can interpret Notice 1450 for you and help release tax lien from your property.
- BBB Accredited: A+ Rating With 5/5 Rating
- Guarantee: 30-Day Moneyback Guarantee
- Reasonable Fees: Lower than Industry Averages
- CPAs and Former IRS Officers: Decades of Combined Experience
Author:
Logan is a practicing CPA and founder of Choice Tax Relief and Money Done Right. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.
