Breakthrough Tax Resolution Secures IRS Lien Discharge So Client Can Sell Home
When taxpayers feel stuck because an IRS tax lien is blocking a major life event, like selling a home, the right strategy can change everything. Recently, Patrick Wanzer, CPA, CTRC, CDS, delivered another major win for a client who needed to sell his house during a divorce but couldn’t move forward because the property was tied to a Notice of Federal Tax Lien.
This case highlights one of the most misunderstood areas of IRS procedure: discharging property from a federal tax lien. Patrick’s powerful approach? The right documentation and strategy to ensure that the IRS releases the taxpayer’s property so a sale of a home can go through.
The Problem: A Home Sale Blocked by an IRS Lien
Our client was in the middle of a divorce, and the settlement agreement required him to sell the marital home. But there was one major obstacle:
A Notice of Federal Tax Lien was attached to the property.
Many taxpayers believe that if the IRS has a lien on a home, the property cannot be sold until the entire tax debt is paid. But that’s not true.
Patrick explained that the IRS can discharge property from a lien, even when the sale proceeds won’t fully pay off the tax debt, if the taxpayer submits the correct application and documentation.
The client asked the question so many people in lien situations ask:
“Is there any way to sell the house?”
Patrick’s answer: Yes. We will request a lien discharge.
How Patrick Wanzer, CPA, CTRC, Challenged the Lien
To move the sale forward, Patrick filed Form 14135: Application for Certificate of Discharge of Property from Federal Tax Lien.
This application requires detailed financial documentation, and Patrick prepared a complete, well‑supported submission that included:
- The home’s appraisal
- The closing statement
- Estimated closing costs
- The first mortgage payoff amount
- The expected net proceeds
- A breakdown showing exactly how much equity was available to apply toward the tax lien
Patrick demonstrated that:
- The IRS would receive all available equity from the sale
- Blocking the sale would result in the IRS receiving nothing
- Allowing the sale was in the best interest of the government
The IRS agreed.
The Result: IRS Discharged the Property and Allowed the Sale
The IRS issued a Certificate of Discharge, releasing the home from the federal tax lien and allowing the sale to close.
This win meant:
- The client could move forward with the divorce settlement
- The IRS received the full amount of equity available
- The remaining tax debt could now be addressed through a resolution case
- The client avoided months, or years, of financial and legal gridlock
The client was relieved, grateful, and finally able to move forward with his life.
Why This Win Matters
Most taxpayers don’t realize that:
- A lien does not automatically prevent a home sale
- The IRS can discharge property even when the lien isn’t fully paid
- Form 14135 is a powerful tool when used correctly
- Proper documentation is essential
- A discharge can unlock major financial and legal progress
Breakthrough Tax Resolution can help, contact us if you, or your client is facing: IRS tax liens, lien discharge requests, property tied to IRS debt, unexpected IRS balances.
Need Help With an IRS Problem?
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Book a free consultation:
https://calendly.com/pwanzer/initial-consultation-tax-resolution
Breakthrough Tax Resolution is ready to help you get free of your IRS tax problems, and get your life back.








