Reasons the IRS will release a Federal Tax Lien
The release of a federal tax lien means that the IRS has cleared both the lien from the taxpayer’s debt and the public Notice of Federal Tax Lien. The IRS does this by filing a Certificate of Release of Federal Tax Lien with the same state and local authorities with whom they filed your Notice of Federal Tax Lien.
The IRS will release your lien if:
Your debt is fully paid
Payment of your debt is guaranteed by a bond,
You have met the payment terms of an Offer in Compromise which the IRS has accepted, or
The period for collection has ended. In this case the release is automatic.
For more information, see IRS Publication 1450 Instructions on How to Request a Certificate of Release of Federal Tax Lien.