Can You Get a Federal Tax Lien Removed After an Offer in Compromise?
You settled your IRS tax debt through an Offer in Compromise. The balance is gone. You’re back on track.
But there’s one lingering problem:
The IRS tax lien is still showing on your credit or public records.
Now you’re asking:
- Can I get the lien released?
- Will it go away automatically?
- How do I remove it after an OIC?
Here’s what Oklahoma taxpayers need to know about tax lien removal after an Offer in Compromise — and how Boulanger CPA can help you clear it.
What Is a Federal Tax Lien?
A tax lien is the IRS’s legal claim against your property when you owe a tax debt. It can:
- Show up in background checks (even though no longer on credit score)
- Prevent loans, leases, or business financing
- Cloud title if you try to sell a home
Even after your tax debt is resolved through an OIC, the lien doesn’t automatically disappear.
Does the Lien Go Away When the Offer in Compromise Is Accepted?
No. The IRS releases the lien after your OIC is paid, but does not withdraw it from public record unless you request it.
- Release = lien no longer enforced
- Withdrawal = lien removed as if it never existed
To get it withdrawn, you need to take action.
How to Request Lien Withdrawal (Form 12277)
Once your Offer in Compromise is fully paid:
- Make sure you’ve stayed compliant on taxes for at least 12 months.
- Fill out and submit
IRS Form 12277 – Application for Withdrawal of Filed Notice of Federal Tax Lien.
- Attach a letter explaining that:
- The debt was satisfied via OIC
- You’ve remained compliant
- Withdrawal benefits both you and the IRS
We handle this entire process for clients across Oklahoma.
Will the IRS Approve It?
In most cases — yes.
If your OIC is completed and you're in good standing, the IRS often grants the request.
How Long Does It Take?
Expect 30–60 days from submission to approval. Once approved, you’ll receive an official Notice of Withdrawal, which you can use to:
- Prove resolution to lenders
- Improve business reputation
- Resolve licensing or bonding issues
Real Example: Lien Removed in Edmond, OK
Client: Marketing agency owner in Edmond
- Settled $88,000 via OIC for $5,400
- Lien still showed on public record
- We submitted Form 12277 and support docs
- IRS approved lien withdrawal in 5 weeks
We Help OIC Clients Remove Tax Liens
At Boulanger CPA, we:
- Track lien release dates
- Draft and submit Form 12277
- Help you stay compliant for approval
📞 Call
(405) 384-4900
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Schedule a free strategy call
FAQ
Does the IRS automatically remove the lien after I settle?
No. The lien is released, but you must submit IRS Form 12277 to request formal withdrawal from the public record.
What is IRS Form 12277?
It’s the application to withdraw a previously filed tax lien. You must show that the debt was paid and that you’re now compliant.
How long does it take to get a tax lien removed?
IRS lien withdrawal typically takes 30–60 days after Form 12277 is submitted and accepted.
Will this improve my credit score?
Tax liens no longer show on credit reports directly, but lien withdrawal can help with background checks, leasing, and financing approvals.
✍️ About the Author
Marc Boulanger, CPA, is the founder of Boulanger CPA and Consulting PC, a CPA firm based in Oklahoma City, OK.
Marc is the author of Oklahoma Taxpayers' Guide: Taking a Stand Against the IRS and has resolved hundreds of complex federal and state tax cases.
With over a decade of experience in IRS and OTC representation, Marc helps Oklahomans navigate high-stakes tax problems with clear strategy and calm expertise.
He is a Certified Tax Representation Consultant and a member of the American Society of Tax Problem Solvers (ASTPS).
📍 Office: Oklahoma City, OK | 📞 (405) 384-4900 | 🌐 www.oklahomacity.cpa
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