How to Put Up a Bond Against a Lien

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    • 1). Call the toll-free customer service line from the Internal Revenue Service at 1-800-913-6050. Request an updated lien payoff amount that shows the remaining balance due. Remember that you must make this phone call within 30 days of receiving your Notice of Federal Tax Lien.

    • 2). Secure a bond for the outstanding amount due from a bank or an escrow company. Understand that once a lien has been filed and attached to your property, your credit rating may be harmed, making it extremely difficult to obtain financing or qualify for any loans.

    • 3). Apply for a tax lien discharge after securing a bond as guaranteed payment for your debt. You must follow the directions outlined in Publication 783 (see "Resources"). The publication will provide you with the instructions you must follow to fill out the Certificate of Discharge from Federal Tax Lien.

    • 4). Fill out sections 1 through 17 on Form 14135, which is attached to Publication 783. Play close attention to Section 5. Remember to enter the correct company name, contact name and phone number for the title or escrow company that will be used at settlement. In Section 7, the basis for your discharge should apply to the fifth option, where a discharge will be issued under this provision to a third party who owns the property, if an acceptable bond satisfies the payments due.

    • 5). Print out Publication 783 and Form 14135. Mail them to the address marked on your Notice of Federal Tax Lien. You must submit this information at least 45 days before the transaction date that the certificate of discharge is needed. This date can be found on your Notice of Federal Tax Lien.

    • 6). Wait for the IRS to review your submission and accept your bond for guaranteed payment of debt. Upon acceptance, the IRS will then issue a Release of the Notice of Federal Tax Lien. Keep in mind that the IRS has the right to reject your submission if they decide the bond cannot fully satisfy the debt.

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