IRS Form 14135 “Application for Certificate of Discharge of Property from Federal Tax Lien” Explained

IRS Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien, asks the IRS to release a specific property from a federal tax lien. It’s most often used so the property can be sold or transferred with clear title. You don’t need to pay your entire tax debt first. In most cases, the IRS gets paid its share from the sale.

Discharge vs. Release vs. Subordination

• Discharge (Form 14135): removes the lien from one property. The lien still attaches to your other property.
• Release: removes the lien entirely after the debt is paid or becomes unenforceable.
• Subordination (Form 14134): lets another creditor move ahead of the IRS, often for a refinance.

When the IRS Will Discharge Property

Under IRC 6325(b), a discharge may be granted when:

• Your remaining property subject to the lien is worth at least twice the tax owed plus senior liens
• The IRS is paid the value of its interest in the property, typically from sale proceeds
• The government’s interest has no value, for example because senior mortgages exceed the property’s value
• Sale proceeds will be held in escrow while lien priority is resolved

What to Submit

• Completed Form 14135 with a legal description of the property
• A copy of the Notice of Federal Tax Lien
• A current appraisal, title report, and the proposed closing statement (HUD-1 or settlement statement) showing all payoffs
• Details of the buyer and the sale

Apply at least 45 days before closing. See IRS Publication 783 for instructions.

Good to Know

• The major credit bureaus no longer include tax liens on credit reports, but a recorded lien still appears in public records and title searches.
• If a sale is a short sale or the IRS will get nothing, explain that clearly with valuation support.
• Coordinate with your title company early. They’ll need the certificate to close.

For more on how liens work, see IRC Section 6321: Federal Tax Liens and Lien vs. Levy.

Get Help From Diehl CPA

IRS collection and appeal procedures have strict deadlines, and what you submit becomes part of the record. Diehl CPA, led by Mark Diehl, CPA, CFE, represents taxpayers before the IRS and can prepare the forms, gather the documentation, and deal with the IRS for you. Learn about our tax relief services or contact us to talk through your situation.

This article is general information, not tax or legal advice for your specific situation. Updated October 2026.