Second, the Advisory Group Manager approves the escrow
agent selected by the applicant; any reasonable expenses
submitted as incurred in connection with the sale of the
property; the claim amounts and priorities, and the distribution
timing of the fund.
Third, the agreement is nalized and contains signatures of all
parties involved including Advisory Group Manager prior to the
discharge being issued.
Note: The escrow account must be funded before payment of
any claim or lien through money paid by the applicant or from
the sale proceeds.
Discharge under 6325(b)(4) requires a bond or deposit but do
not send one with the application. The Advisory Group manager
must rst determine the amount of bond or deposit needed
for the discharge and determine that the bond company, if
applicable, is from the approved list.
Q2: What is an acceptable form of payment?
Make payments in cash or by the following types of checks:
certied; cashiers; or treasurer’s check. The check must be
drawn on any bank or trust company incorporated under the
laws of the United States, or of any state, or possession of
the United States. Payment can also be made using a United
States postal, bank, express or telegraph money order.
Important! If you pay by personal check, issuance of the
certicate of discharge will be delayed until the bank honors the
check.
Q3: Who makes the decision to issue a Certificate of
Discharge?
In all cases Advisory staff will review and verify the information
provided, determine whether a certicate of discharge should
be issued, and contact you with any questions. Advisory may
contact you, your representative, or any person relative to the
transaction for additional information.
The Advisory Group Manager has the responsibility to review
and approve the determination and let you know the outcome.
If approved, you will receive a conditional commitment letter.
Q4: When will I receive the Certificate of Discharge?
The Internal Revenue Code under which the certicate of
discharge will be issued or granted and the time at which you
are divested of your interest in the property determines when
you will receive the certicate.
• Under 6325(b)(1) you will receive the certicate when it is
determined the remaining property meets the criteria of the
provision.
• Under 6325(b)(2)(A) you will receive the certicate after
IRS receives payment of the agreed upon amount in partial
satisfaction of the tax liability, proof that the taxpayer has
been divested of title, and receipt of a copy of the nal
settlement statement.
• Under 6325(b)(2)(B) you will receive the certicate when
it is determined that the government’s interest in the
property is valueless, the IRS has received proof that the
taxpayer has been divested of title, and a copy of the nal
settlement statement.
NOTE: Under provisions 6325(b)(2)(A) and 6325(b)(2)(B) at
the conclusion of a mortgage foreclosure the certicate will
be issued in accordance with the terms of the conditional
commitment letter. Also see, Publication 487, How to Prepare
an Application Requesting the United States to Release Its
Right to Redeem Property Secured by a Federal Tax Lien.
• Under 6325(b)(3) you will receive the certicate when the
amount of the government’s interest in the property has
been placed in the approved escrow account.
• Under 6325(b)(4) you will receive the certicate when the
amount equal to the government’s interest in the property
is received or an approved bond has posted.
Q5: What happens if my application is denied?
If your application is denied, you will receive Form 9423,
Collection Appeal Request and Publication 1660, Collection
Appeal Rights, with an explanation of why your application was
denied.
Privacy and Paperwork Reduction
Act Notice
The Privacy act of 1974 says that when we ask you for
information about yourself, we must rst tell you our legal right
to ask for the information, why we are asking for it, and how it
will be used. We must also tell you what could happen if you do
not provide it and whether or not you must respond under the
law.
We ask for the information on this form to carry out the Internal
Revenue laws of the United States. This information requested
on this form is needed to process your application and to
determine whether the federal tax lien can be discharged. You
are not required to apply for discharge; however, if you want the
federal tax lien to be discharged, you are required to provide
the information requested on this form. Section 6109 requires
you to provide the requested identication numbers. Failure to
provide this information may delay or prevent processing your
application; providing any false information may subject you to
penalties.
The time needed to complete and le this form will vary
depending on individual circumstances. The estimated burden
for individuals ling this form is approved under OMB control
number 1545-2174. The estimated burden for those who le
this form is shown below.
• Recordkeeping 2 hr., 45 min.
• Learning about the law or the form 2 hr.
• Preparing the form 1 hr., 30 min.
• Copying, assembling, and sending the form to the IRS 85
min.
Routine uses of this information include giving it to the
Department of Justice for civil and criminal litigation, and
to cities, states, the District of Columbia, and United States
commonwealths and possessions for use in administering their
tax laws. Advisory may contact you, your representative, or any
person relative to the transaction for additional information.
We may also disclose this information to other countries
under a tax treaty, to federal and state agencies to enforce
federal nontax criminal laws, or to federal law enforcement and
intelligence agencies to combat terrorism.