IRS Form 14135 – IRS Forms, Instructions, Pubs 2026 – A federal tax lien can complicate selling, refinancing, or transferring property, even if you’re actively resolving your tax debt. IRS Form 14135, officially titled Application for Certificate of Discharge of Property from Federal Tax Lien, provides a targeted solution: it asks the IRS to release the lien from a specific piece of property while leaving it attached to your other assets.
This guide explains everything about Form 14135, based on the latest IRS resources (Form 14135 revised November 2024 and Publication 783). Whether you’re selling a home, refinancing, or handling estate property, you’ll learn eligibility, required documents, step-by-step instructions, submission details, and more.
Download the official IRS Form 14135 PDF here: https://www.irs.gov/pub/irs-pdf/f14135.pdf
What Is a Federal Tax Lien?
The IRS files a Notice of Federal Tax Lien (NFTL) after assessing a tax debt and sending notices without full payment. This public lien attaches to all your current and future property, affecting credit, loans, and sales.
A certificate of discharge removes the lien from one specific asset (e.g., your house or vehicle) without releasing the overall tax debt or lien on other property.
When Should You Use IRS Form 14135?
File Form 14135 when you need to:
- Sell or transfer property subject to a tax lien (common in real estate closings).
- Refinance or borrow against the property.
- Clear title for a buyer or lender.
- Handle estate property with a lien (non-estate tax liens; use Form 4422 for estate tax liens).
It is not for full lien release (use payment or Form 1450) or subordination (use Form 14134).
Eligibility: The 5 Bases for Discharge Under IRC Section 6325(b)
The IRS grants discharges only under specific Internal Revenue Code provisions. Select the best fit on Form 14135 (Section 7); Publication 783 provides details.
| Basis | Description | Best For | Key Requirement |
|---|---|---|---|
| 6325(b)(1) | Remaining attached property value ≥ 2× (tax lien + senior encumbrances) | Taxpayers with substantial other assets | Appraisals for both discharged and remaining property |
| 6325(b)(2)(A) | IRS receives payment equal to its equity in the property | Sales/refinances with equity for IRS | Pay IRS-determined amount (often from proceeds) |
| 6325(b)(2)(B) | IRS has zero equity/interest in the property | Underwater properties (senior debts exceed value) | Proof of no equity (appraisals, title report) |
| 6325(b)(3) | Sale proceeds held in escrow for IRS claims | Structured sales/escrows | Draft escrow agreement approved by IRS |
| 6325(b)(4) | Non-taxpayer owner posts deposit/bond equal to IRS interest | Third-party owners (e.g., spouses, heirs) | Deposit or surety bond; 120-day court refund option |
Note: For non-taxpayer owners applying under 6325(b)(2), you must waive certain rights or default to (b)(4). Tenancy by the entirety often uses half-value rules.
Step-by-Step: How to Complete IRS Form 14135
Form 14135 (3 pages, Rev. 11-2024) is straightforward but detail-oriented. Complete every section; use “NA” when not applicable.
- Section 1: Taxpayer Information — Use exact name/address from the NFTL. Include SSN/EIN (last 4 digits often suffice) and contact info.
- Section 2: Applicant Information — Check if you’re the taxpayer. Provide your details and relationship (e.g., “spouse,” “buyer”).
- Section 3: Purchaser/Transferee/New Owner — Name the buyer or new owner and their relationship to the taxpayer.
- Section 4: Attorney/Representative — Attach Form 8821 or 2848 if using a representative (e.g., tax pro, title company). Specify whose interest they represent.
- Section 5: Lender/Escrow Company — Required for 6325(b)(3) escrows; include contact info.
- Section 6: Monetary Information — Enter proposed sales price and expected IRS proceeds (use $0.00 if none).
- Section 7: Basis for Discharge — Check one box (see table above). Reference Publication 783 for details.
- Section 8: Property Description — Be specific (e.g., “3-bedroom single-family home at [address]”). Attach deed/title with legal description. For (b)(1), include remaining properties.
- Section 9: Appraisal and Valuations — Attach a professional appraisal by a disinterested third party plus one more (county assessment, informal valuation, auction price, etc.). For (b)(1), value remaining property too.
- Sections 10–14: Supporting Documents — Attach lien copy (if not taxpayer), sales contract, title report, closing statement (HUD-1/ALTA), and any extras.
- Section 15: Escrow Agreement — Only for (b)(3); must detail account, conditions, costs, and signatures.
- Section 16: Waiver — For third-party (b)(2) applicants; waive deposit rights if desired.
- Section 17: Declaration — Sign under penalties of perjury.
Pro Tip: Submit at least 45 days before your transaction to allow review.
Required Documents Checklist
- Professional appraisal (mandatory in most cases)
- Deed/title with legal description
- Current title report (showing senior liens)
- Sales contract or purchase agreement
- Proposed closing statement (itemized costs)
- Copy of NFTL (if applicant ≠ taxpayer)
- Valuations for remaining property (if 6325(b)(1))
- Draft escrow agreement (if 6325(b)(3))
- Form 8821/2848 (if using a representative)
- Any additional evidence (affidavits, court docs)
Where to Submit Form 14135
Primary Mailing Address (as of 2025–2026):
- IRS Advisory Consolidated Receipts
7940 Kentucky Drive, Stop 2850A
Florence, KY 41042-2915
Fax: 844-201-8382
You can also submit electronically via IRS.gov through Your Online Account for faster processing in many cases. Check Publication 4235 for the latest addresses and phone numbers (e.g., 859-594-6090 for questions).
What Happens After Submission?
- IRS reviews (may request more info).
- They issue a determination letter.
- If approved, you pay any required amount (certified funds) or fund escrow.
- IRS issues the Certificate of Discharge (removes lien from that property only).
- Record the certificate at your local recorder’s office.
Processing times vary; expect 30–90+ days. Denials come with appeal rights (Form 9423 and Pub 1660).
Benefits of a Successful Discharge
- Clear title for closing.
- Enables sales, refinances, or transfers.
- Protects buyer/lender from IRS claims on the property.
- Keeps your overall payment plan or resolution intact.
Common Mistakes to Avoid
- Incomplete applications or missing appraisals.
- Submitting too close to closing date.
- Using personal checks (IRS rejects them).
- Forgetting to record the certificate locally.
- Choosing the wrong basis—consult Pub 783 or a tax professional.
Frequently Asked Questions (FAQs)
- How long does it take to get a discharge?
Allow 45+ days before your deadline. Complex cases take longer. - Do I need to pay the full tax debt?
No—only the IRS’s interest in the specific property (or nothing, in some cases). - Can a third party (e.g., buyer or spouse) apply?
Yes, using the appropriate basis and attachments. - Is there a fee for Form 14135?
No filing fee, but appraisals and potential payments apply. - What if the IRS denies my application?
You receive appeal instructions. You can resubmit with more information.
Final Advice
IRS Form 14135 is a powerful tool for navigating tax liens during property transactions, but accuracy matters. Always cross-reference the latest Publication 783 and consult a tax attorney, enrolled agent, or CPA familiar with liens—especially for high-value or complex situations.
For the most current information:
Need help? Contact the IRS Advisory office or a tax professional promptly. Acting early can make the difference in a successful closing.