What is the difference between a tax lien release and a tax lien withdrawal?

A lien release and lien withdrawal are very different, and understanding the distinction is critical. A lien release means the IRS acknowledges the debt has been satisfied, and they remove their legal claim on your property. However, the public record of the original lien filing remains in county records. It shows the lien was filed and then released. A lien withdrawal removes the original Notice of Federal Tax Lien filing entirely from public records, as if it was never filed. This is far better for your financial reputation. You can request a lien withdrawal (Form 12277) after paying the debt in full, when you're in a Direct Debit Installment Agreement and owe $25,000 or less, if the lien was filed prematurely or not in accordance with IRS procedures, or if withdrawal will facilitate collection. Always request withdrawal when possible. After paying off your tax debt, file Form 12277 immediately. The IRS processes withdrawal requests in 30-60 days.