Partial Release of Lien and Subordination of Lien

A Partial Release of Lien relinquishes a state tax lien from a specific piece of property. However, the lien remains in effect and will encumber the transfer of title of any other properties owned or subsequently acquired by the taxpayer. A few reasons to request a Partial Release of Lien are, there is a need to transfer the rights to the property and there are insufficient funds to fully satisfy the state tax lien or the liened party has no rights to title of the property.

A Subordination of Lien does not remove the state tax lien from a specific piece of property, it simply lowers the priority in favor of some other lien against the property. The lien remains in effect and will encumber the sale of the specified property and any other property owned or acquired by the taxpayer. Typical situations are, the refinance of a loan and there are insufficient funds to fully satisfy the state tax lien or the existing loan is being modified.

To request a Partial Release of Lien or Lien Subordination on a Personal Income Tax Lien, please submit the following information to the Franchise Tax Board Lien Group.

1. A letter of explanation detailing your request
2. An estimated closing statement
3. A current Preliminary Title Report to include the property description
4. An appraisal or documentation that establishes the market value of the property
5. Copies of all other liens and encumbrances
6. A copy of the new deed of trust (for subordination requests only)

Send your request by overnight mail to:

Franchise Tax Board
Attn: Lien Group, Mail Stop: A-346
Sacramento CA 95827

To request a Partial Release of Lien or Lien Subordination on a Business Entity Lien, please
call one of the following numbers:

Corporations (888) 635-0494
Partnerships (916) 845-7165
Limited Liability Company (916) 845-7166