It seems it’s never over until it’s over with the IRS. You must ask IRS in writing to withdraw a tax lien once the tax liability is fully paid.
A withdrawal of a federal tax lien is more beneficial than a release because a withdrawal expunges the lien immediately from the debtor’s records and it is as if the lien had never been filed. Use Form 12277 to request a withdrawal.
A lien withdrawal can be requested even if you haven’t fully repaid the debt, as long as the amount that you currently owe the Service doesn’t exceed $25,000. You also must agree to pay off the rest via monthly debits from your bank account. IRS won’t withdraw the lien until at least three consecutive debits have been made.
Once Uncle is owed money they don’t make things easy.