A Notice of State Tax Lien attaches to all property owned by a taxpayer and to all property the taxpayer may acquire in the future. The Department of Revenue may agree, under certain circumstances, to release a particular piece of property from this encumbrance. The circumstances in which the Department of Revenue will consider a Specific Lien Release are as follows:
- The taxpayer owns other property, subject to the lien, that is worth at least two times the total of the tax owed, plus any additions to the tax owed, and any other debts owed on the property, such as a mortgage.
- The taxpayer is giving up ownership in the property and the Department of Revenue is to receive the value of the Commonwealth's interest in the property.
- The taxpayer is giving up ownership in the property and the Department of Revenue has determined that the Commonwealth's interest in the property has no value at the time ownership is relinquished.
- The property in question is being sold and there is a dispute as to who is entitled to the sale proceeds, and the proceeds are placed in escrow while the dispute is being resolved.
To be considered for a Specific Lien Release the taxpayer must complete and submit the Application for Specific Lien Release to the Department of Revenue.
The Specific Lien Release and Lien Subordination program requires up to 10 business days to process the applications. If you require a lien release or subordination and have less than 10 days to the closing, your request may not be completed in time. All requests are processed in the order received. Please make sure that all applications are complete and required information is supplied. If the applications are not complete or require additional information, the processing time is slowed down. Your cooperation with this process is appreciated.