Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien

What it does

Form 12277 asks the IRS to withdraw a Notice of Federal Tax Lien it filed with a recording office. If the IRS approves, it files a withdrawal (Form 10916(c)) in the same recording office and sends you a copy. If it denies the request, it tells you and explains your appeal rights.

When people use it

• The lien notice was filed too early or not in line with IRS procedures.
• You entered an installment agreement that did not provide for a lien notice to be filed.
• You are on a Direct Debit Installment Agreement.
• Withdrawal would help the IRS collect the tax, or would be in the best interest of both you and the government.
• The lien is already released and you want the notice withdrawn too. The instructions say to generally check the best-interest box for this.

Before you file

• Attach a copy of the lien notice if you have it. If not, give its serial number, filing date and recording office if you know them.
• Explain in detail why you qualify and attach documents that support it.
• Mail it to the IRS office assigned to your account. If none is assigned or you are unsure, send it to the Advisory Group Manager for your area, listed in Publication 4235.

What to watch for

• The application is signed under penalties of perjury.
• Incomplete applications can slow the decision while the IRS asks for more information.
• If you want credit bureaus, lenders or creditors told about the withdrawal, you must ask in writing and list their names and addresses.