[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 26CFR401]
[Page 790-791]

TITLE 26--INTERNAL REVENUE

CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY

(CONTINUED)

PART 401_TEMPORARY PROCEDURES AND ADMINISTRATION REGULATIONS UNDER THE

TAX EQUITY AND FISCAL RESPONSIBILITY ACT OF 1982 (PUB. L. 97-248)

--Table of Contents

Sec. 401.6325-1 Release of liens.

(a) In general. The district director shall issue a certificate of
release for a filed notice of Federal tax lien not later than 30 days
after the date on which the district director finds that the entire tax
liability listed in such notice of Federal tax lien has been fully
satisfied (as defined in paragraph (c) of this section) or has become
legally unenforceable.

(b) Certificate of release for a lien which has become legally
unenforceable. The district director shall have the authority to file a
notice of Federal tax lien which also contains a certificate of release
pertaining to those liens which become legally unenforceable. Such
release will become effective as a release as of a date prescribed in
the document containing the notice of Federal tax lien and certificate
of release.

(c) Satisfaction of tax liability. For purposes of paragraph (a) of
this section, satisfaction of the tax liability occurs when--

(1) The district director determines that the entire tax liability
listed in a notice of Federal tax lien has been fully satisfied. Such
determination will be made as soon as practicable after tender of
payment; or

(2) The taxpayer provides the district director with proof of full
payment (as defined in paragraph (d) of this section) with respect to
the entire tax liability listed in a notice of Federal tax lien together
with the information and documents set forth in paragraph (f) of this
section. See paragraph (e) of this section if more than one tax
liability is listed in a notice of Federal tax lien.

(d) Proof of full payment. As used in paragraph (c)(2) of this
section, the term ``proof of full payment'' means--

(1) An internal revenue cashier's receipt reflecting full payment of
the tax liability in question;

(2) A canceled check in an amount sufficient to satisfy the tax
liability for which the release is being sought; or

(3) Any other manner of proof acceptable to the district director.

(e) Notice of a Federal tax lien which lists multiple liabilities.
When a notice of Federal tax liens lists multiple tax liabilities, the
district director shall issue a certificate of release when all of the
tax liabilities listed in the notice of Federal tax lien have been fully
satisfied or have become legally unenforceable. In addition, if the
taxpayer requests that a certificate of release be issued with respect
to one or more tax liabilities listed in the notice of Federal tax lien
and such liability has been fully satisfied or has become legally
unenforceable, the district director shall issue a certificate of
release. For example, if a notice of Federal tax lien lists two separate
liabilities and one of the liabilities is satisfied, the taxpayer may
request the issuance of a certificate of release with respect to the
satisfied tax liability and the district director shall issue a release.
See paragraph (c) of this section in determining when a tax lien has
been fully satisfied. A request made by the taxpayer shall be made to
the district director in accordance with the procedures in paragraph (f)
of this section.

(f) Taxpayer requests. A request for a certificate of release with
respect to a notice of Federal tax lien shall be submitted in writing to
the district director (marked for the attention of the Chief, Special
Procedures Function) of the district in which the notice of Federal tax
lien was filed. The request shall contain the following--

(1) Name and address of the taxpayer;

(2) A copy of the notice of Federal tax lien affecting the property;

and

(3) The grounds upon which the issuance of a release is sought.

(g) Effective date. The provisions of this section are effective
with respect to a notice of Federal tax lien (1) which is filed after
December 31, 1982, (2) which is satisfied after December 31, 1982, or

(3) with respect to which the

[[Page 791]]

taxpayer after December 31, 1982, requests that district director to
issue a certificate of release on the grounds that the liability was
satisfied or legally unenforceable.

(Secs. 6325(a) and 7805 of the Internal Revenue Code of 1954 (68A Stat.

781, 917; 26 U.S.C. 6325(a), 7805))

[T.D. 7886, 48 FR 17069, Apr. 21, 1983; 48 FR 19878, May 3, 1983]

PART 402 [RESERVED]