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The IRS Form 12277 plays a critical role for taxpayers dealing with issues related to tax liability. This form enables individuals to request the withdrawal of a lien under specific circumstances. A tax lien can complicate financial matters, affecting credit scores and the ability to secure loans or mortgages. By completing Form 12277, taxpayers can seek to remove this lien, potentially easing the burden of debt. It's essential for taxpayers to understand the requirements and documentation necessary for this process. This form should be filed only after the debt has been paid in full or if the lien was placed inappropriately. The process can seem daunting, but with the right information, individuals can navigate it effectively. The submission of Form 12277 offers a pathway to regain financial freedom and restore peace of mind.
IRS 12277 Example
Form 12277
(October 2011)
Department of the Treasury — Internal Revenue Service
Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien
(Internal Revenue Code Section 6323(j))
1.Taxpayer Name (as shown on the Notice of Federal Tax Lien)
2. Social Security/Employer Identification No.
3.Taxpayer's Representative, if applicable, or Name and Title of contact person, if taxpayer is a business
4.Address (Number, Street, P.O. Box)
5. City
6. State
7. ZIP code
8. Phone Number
9.Attach copy of the Form 668(Y), Notice of Federal Tax Lien, if available, OR, if you don't have a copy, provide the following information, if available:
Serial number of Form 668(Y) (found near the top of the document)
Date Form 668(Y) filed
Recording office where Form 668(Y) was filed
10. Current status of the federal tax lien ("x" appropriate box)
Open
Released
Unknown
11. Reason for requesting withdrawal of the filed Notice of Federal Tax Lien ("x" appropriate box(es))
The Notice of Federal Tax Lien was filed prematurely or not in accordance with IRS procedures.
The taxpayer entered into an installment agreement to satisfy the liability for which the lien was imposed and the agreement did not provide for a Notice of Federal Tax Lien to be filed.
The taxpayer is under a Direct Debit Installment Agreement.
Withdrawal will facilitate collection of the tax.
The taxpayer, or the Taxpayer Advocate acting on behalf of the taxpayer, believes withdrawal is in the best interest of the taxpayer and the government.
12.Explain the basis for the withdrawal request (attach additional sheets and other documentation that substantiates your request, as needed)
Affirmation
Under penalties of perjury, I declare that I have examined this application (including any accompanying schedules, exhibits, affidavits, and statements) and, to the best of my knowledge and belief, it is true, correct, and complete
Signature (Taxpayer or Representative) |
Title (if business) |
Date |
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Catalog Number 27939C |
www.irs.gov |
Form 12277 (Rev. |
Page 2 of 2
General Instructions
1.Complete the application. If the information you supply is not complete, it may be necessary for the IRS to obtain additional information before making a determination on the application.
Sections 1 and 2: Enter the taxpayer's name and Social Security Number (SSN) or Employer Identification Number (EIN) as shown on the Notice of Federal Tax Lien (NFTL).
Section 3: Enter the name of the person completing the application if it differs from the taxpayer's name in section 1 (for example, taxpayer representative). For business taxpayers, enter the name and title of person making the application. Otherwise, leave blank.
Sections 4 through 8: Enter current contact information of taxpayer or representative.
Section 9: Attach a copy of the NFTL to be withdrawn, if available. If you don't have a copy of the NFTL but have other information about the NFTL, enter that information to assist the IRS in processing your request.
Section 10: Check the box that indicates the current status of the lien.
"Open" means there is still a balance owed with respect to the tax liabilities listed on the NFTL. "Released" means the lien has been satisfied or is no longer enforceable.
"Unknown" means you do not know the current status of the lien.
Section 11: Check the box(es) that best describe the
reason(s) for the withdrawal request. NOTE: If you are requesting a withdrawal of a released NFTL, you generally should check the last box regarding the best interest provision.
Section 12: Provide a detailed explanation of the events or the situation to support your reason(s) for the withdrawal request. Attach additional sheets and supporting documentation, as needed.
Affirmation: Sign and date the application. If you are completing the application for a business taxpayer, enter your title in the business.
2.Mail your application to the IRS office assigned your account. If the account is not assigned or you are uncertain where it is assigned, mail your application to IRS, ATTN: Advisory Group Manager, in the area where you live or is the taxpayer's principal place of business. Use Publication 4235, Advisory Group Addresses, to determine the appropriate office.
3.Your application will be reviewed and, if needed, you may be asked to provide additional information. You will be contacted regarding a determination on your application.
a. If a determination is made to withdraw the NFTL, we will file a Form 10916(c), Withdrawal of Filed Notice of Federal Tax Lien, in the recording office where the original NFTL was filed and provide you a copy of the document for your records.
b. If the determination is made to not withdraw the NFTL, we will notify you and provide information regarding your rights to appeal the decision.
4.At your request, we will notify other interested parties of the withdrawal notice. Your request must be in writing and provide the names and addresses of the credit reporting agencies, financial institutions, and/or creditors that you want notified.
NOTE: Your request serves as our authority to release the notice of withdrawal information to the agencies, financial institutions, or creditors you have identified.
5.If, at a later date, additional copies of the withdrawal notice are needed, you must provide a written request to the Advisory Group Manager. The request must provide:
a.The taxpayer's name, current address, and taxpayer identification number with a brief statement authorizing the additional notifications;.
b.A copy of the notice of withdrawal, if available; and
c.A supplemental list of the names and addresses of any credit reporting agencies, financial institutions, or creditors to notify of the withdrawal of the filed Form 668(Y).
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Privacy Act Notice |
We ask for the information on this form to carry out the Internal Revenue laws of the United States. The primary purpose of this form is to apply for withdrawal of a notice of federal tax lien. The information requested on this form is needed to process your application and to determine whether the notice of federal tax lien can be withdrawn. You are not required to apply for a withdrawal; however, if you want the notice of federal tax lien to be withdrawn, you are required to provide the information requested on this form. Sections 6001, 6011, and 6323 of the Internal Revenue Code authorize us to collect this information. Section 6109 requires you to provide the requested identification numbers. Failure to provide this information may delay or prevent processing your application; providing false or fraudulent information may subject you to penalties.
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 U.S. commonwealths and possessions for use in administering their tax laws. 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.
Catalog Number 27939C |
www.irs.gov |
Form 12277 (Rev. |
File Breakdown
| Fact Name | Details |
|---|---|
| Purpose | The IRS Form 12277 is used to request the withdrawal of a federal tax lien. |
| Eligibility | Taxpayers can submit Form 12277 if they have paid their tax debts or if the lien was filed in error. |
| Submission Method | Form 12277 can be submitted by mail to the appropriate IRS address specified in the form instructions. |
| Processing Time | The IRS typically processes the request within 30 to 60 days after receiving the form. |
| Impact on Credit | Withdrawal of the lien may help improve a taxpayer's credit score since it indicates the debt has been resolved. |
Guide to Using IRS 12277
After gathering your personal information, prepare to fill out the IRS Form 12277. The form primarily asks for details that help the IRS identify and process your request effectively. Make sure to have your tax information on hand for a smoother experience.
- Obtain the IRS Form 12277 from the official IRS website or a local IRS office.
- Start with the section that requires your name. Enter your first name, middle initial (if applicable), and last name.
- Provide your Social Security Number (SSN) or Employer Identification Number (EIN) in the next field.
- List your current address, including the street, city, state, and ZIP code.
- Indicate your preferred phone number for contact. This may be used by the IRS for any clarifications needed.
- Fill in the section that requests your account information, including your tax year(s) in question and details about your tax liability.
- Review the box that applies to your situation, such as “I wish to withdraw my request for a hearing,” or any other applicable options.
- Sign and date the form at the bottom, ensuring your signature is consistent with the name you've provided.
- If you're sending this form by mail, include a copy of any required documents that support your request.
- Send the completed form to the appropriate IRS address based on your state, which can be found on the IRS website.
Get Answers on IRS 12277
What is the IRS Form 12277?
The IRS Form 12277, officially known as the "Application for Withdrawal of Form 668(Y), Notice of Federal Tax Lien," is used by taxpayers to request the withdrawal of a previously filed tax lien. A tax lien is a legal claim against a taxpayer’s property due to unpaid federal taxes. The completion of this form can help individuals restore their credit and remove the negative impact of a tax lien.
Who should file Form 12277?
Individuals or businesses that have had a federal tax lien filed against them and wish to withdraw that lien should consider filing Form 12277. If the underlying tax liability has been satisfied or if certain other conditions have been met, submitting this form may be a beneficial step. Taxpayers should ensure that they meet the qualifying criteria before applying.
How can I determine if I’m eligible to submit Form 12277?
The eligibility to file Form 12277 is contingent upon several factors:
- All taxes reported on your tax return must be paid in full.
- You have entered into an acceptable installment agreement.
- Your tax lien has been assessed erroneously.
It’s essential to review your circumstances carefully. If you have concerns about eligibility, consider seeking advice from a tax professional.
What information do I need to fill out Form 12277?
When completing Form 12277, you will need to provide several pieces of information, including:
- Your name, address, and Social Security number or Employer Identification Number (EIN).
- The date the tax lien was filed and the location of the lien.
- Your signature and the date of signing.
Ensuring that all information is accurate and up-to-date is crucial to avoid delays in processing your request.
How do I submit Form 12277?
Form 12277 can be submitted to the address specified in the form’s instructions. You may send it via regular mail or choose to submit it through a tax professional if that option is preferable. Ensure that you keep a copy of the submitted form for your records, as this can be useful for any follow-up communications with the IRS.
What is the processing time for Form 12277?
The processing time for Form 12277 can vary, typically taking anywhere from 30 to 60 days. During this time, the IRS will review the submitted application and determine whether to approve the withdrawal of the tax lien. Taxpayers are encouraged to check the status of their request by contacting the IRS directly if they do not receive any notification within this timeframe.
What should I do if my request is denied?
If the IRS denies your Form 12277 request, you will receive a letter explaining the reasons for the denial. It is advisable to read this letter carefully. If you believe that you still qualify for withdrawal, you have the option to appeal the decision. Consulting with a tax professional can provide guidance on the best steps to take moving forward.
Common mistakes
Filling out IRS Form 12277, which is used to request a withdrawal of a federal tax lien, can be a daunting task. It’s essential to provide accurate information to ensure the request is processed smoothly. One common mistake people often make is failing to supply complete contact information. If the IRS cannot reach you, it can delay the process significantly. Make sure you include every detail, such as your current mailing address, email address, and phone number, to avoid unnecessary holdups.
Another frequent error is not including the necessary supporting documentation. The IRS typically requires specific documents to substantiate your request. This might include proof that the tax liability has been resolved or that you are otherwise entitled to have the lien withdrawn. If these documents are missing, the IRS will not be able to approve your request. Always double-check the requirements based on your unique circumstances before submitting the form.
Many individuals also overlook the importance of signing the form. A signature is crucial because the IRS needs to validate that the request comes from the individual responsible for the tax liability. Submitting a Form 12277 without a signature can result in automatic rejection. It's a small detail, but it can have a significant impact on your application.
Lastly, some people neglect to keep copies of the forms and documents they send. Retaining copies is vital for your records, especially if a question arises during the review process. If the IRS requests additional information, having copies allows you to respond promptly. Always make sure you’re equipped with your own records and have a system in place to follow up on the status of your request.
Documents used along the form
The IRS Form 12277 is used to request the withdrawal of a federal tax lien. This form helps individuals or businesses to alleviate issues stemming from a tax lien, allowing them to clear their credit history and improve their financial standing. When completing this form, it's important to understand other related documents that may be necessary for a comprehensive approach to tax issues.
- IRS Form 1040: This is the standard individual income tax return form. Taxpayers use it to report their income, calculate their tax liability, and claim tax credits.
- IRS Form 941: Employers use this form to report payroll taxes withheld from employees, including social security and Medicare taxes. It’s essential for businesses to stay compliant with tax obligations.
- IRS Form 4868: This is the application for automatic extension of time to file an income tax return. It allows taxpayers additional time to submit their complete tax return without incurring penalties.
- IRS Form 656: This form is used to submit an offer in compromise to settle tax debts for less than the full amount owed. It’s a way for individuals who can’t pay their tax bills to negotiate with the IRS.
- IRS Form 8821: This document authorizes an agent to represent you before the IRS and request your tax information. It’s crucial when seeking assistance from a tax professional.
- IRS Form 4506: This form allows individuals and businesses to request copies of prior tax returns or tax account information from the IRS. It's particularly useful for verifying income when applying for loans.
- IRS Form 1099: This form reports various types of income that are not from employment. It is essential for independent contractors and freelancers to report their earnings correctly.
- IRS Form 2848: Power of Attorney and Declaration of Representative. This form allows taxpayers to authorize another person to act on their behalf regarding tax matters, providing access to tax information and representation.
Understanding these forms and documents can streamline the process of addressing your tax situation. Having the right paperwork can make it easier to navigate your dealings with the IRS, whether you're seeking to resolve past issues or simply maintain current compliance. Always consider consulting a tax professional if you have specific questions or need assistance with these forms.
Similar forms
The IRS Form 12277 is used to request the withdrawal of a federal tax lien. This form serves a specific purpose within the context of tax liability and lien resolution. Below are five documents that are similar to Form 12277 in terms of their function or related processes:
- IRS Form 940: This form is used annually to report and pay federal unemployment taxes. Like Form 12277, it is pivotal for a taxpayer looking to resolve issues with their tax obligations.
- IRS Form 941: Employers use this form to report income taxes, Social Security tax, or Medicare tax withheld from employees' paychecks. Similar to Form 12277, it acts as a method for taxpayers to maintain compliance and address potential tax liabilities.
- IRS Form 4868: This is an application for an automatic extension of time to file a federal income tax return. While its purpose focuses on timing rather than lien withdrawal, both forms facilitate communication with the IRS regarding taxpayer obligations.
- IRS Form 656: This form is utilized for an offer in compromise, allowing taxpayers to negotiate their tax debt. Like Form 12277, it addresses tax resolution and potential relief options for taxpayers.
- IRS Form 8822: Used to update address information with the IRS, this form plays a crucial role in ensuring that communications are directed appropriately. It emphasizes the importance of contact between the taxpayer and the IRS, similar to the function of Form 12277.
Dos and Don'ts
When completing the IRS Form 12277, it's essential to approach the process with care to ensure your application is accurate and thorough. Here is a list of practices to follow and avoid:
- Do: Read the instructions carefully before starting to fill out the form.
- Do: Provide all required information in the appropriate sections of the form.
- Do: Double-check your entries for accuracy, particularly your Social Security number and other identifying information.
- Do: Sign and date the form; an unsigned form may be rejected.
- Don't: Leave any required fields blank; incomplete forms may delay processing.
- Don't: Forget to include any additional documentation that may support your request.
Taking these steps can help streamline the process and ensure that your submission is received positively by the IRS.
Misconceptions
The IRS Form 12277, Request for Withdrawal of Filed Form 668(Y), is often misunderstood. Here are seven common misconceptions:
- 1. Form 12277 guarantees the removal of a lien. Many believe that submitting this form will automatically erase a tax lien. However, approval is not guaranteed and depends on various factors including the taxpayer’s compliance history.
- 2. Anyone can file Form 12277. While technically anyone can fill out the form, it is primarily intended for individuals who have successfully paid off their tax debts or who have met specific conditions. Simply wanting a lien removed does not qualify.
- 3. All lien withdrawals require Form 12277. Some individuals think that every situation involving a lien must use this form. However, certain circumstances, like paying taxes or waiting a statutory period, can remove a lien without filing.
- 4. Submitting the form concludes the matter quickly. A common belief is that once the form is submitted, the lien will be swiftly canceled. In reality, processing times can vary, leading to long waits before receiving a decision.
- 5. There is a fee for filing Form 12277. Some might think that there is a cost associated with this form. In fact, there is no fee required to request a withdrawal of a lien using Form 12277.
- 6. The IRS will notify you once the lien is withdrawn. After submitting the form, some expect an automatic notification of lien withdrawal. While the IRS might not directly contact you, it’s important to follow up and confirm the status.
- 7. Form 12277 is only for personal tax liens. Some believe this form is limited to individuals. In reality, businesses and other entities can also use it, provided they meet the eligibility criteria.
Understanding these misconceptions can help clarify the process and empower taxpayers to take the right steps regarding their tax liens.
Key takeaways
The IRS 12277 form is important for taxpayers seeking to withdraw certain notices related to tax debts. Below are key takeaways for effectively filling out and using this form:
- Understand the Purpose: The IRS 12277 form is primarily used to request the withdrawal of a federal tax lien.
- Eligibility Criteria: Ensure you meet the eligibility criteria for filing this form, including settling your tax debt or entering into an approved payment arrangement.
- Complete Information: Fill out all required fields accurately. Providing incorrect information can lead to delays.
- Timely Submission: Submit the form as soon as possible after meeting the conditions for withdrawal to avoid complications in your tax records.
- Follow Up: After submission, monitor the status of your request. The IRS may contact you for further information or clarification.