Letter 544, Letter of Apology - Erroneous Filing of Notice of Federal Tax Lien, is exactly what it sounds like. The IRS filed a Notice of Federal Tax Lien that it should not have filed, released it as erroneous under IRC Section 6326, and is apologizing in writing. Under IRM 5.12.3, it is signed by an IRS Advisory group manager and sent with a copy of the certificate of release.
When the IRS Issues It
The IRS uses Letter 544 when a lien was filed in error. Common situations include a lien filed after the tax was already paid, a lien filed for a balance created by identity theft or preparer misconduct, a lien filed during a bankruptcy stay, or a lien filed after the collection statute expired. The release that comes with it carries special wording stating the lien was erroneous, which is different from a routine release after payment.
Put It to Work
This letter is a tool. At your written request, the IRS will send copies of the release and the apology letter to creditors and credit bureaus you name. Give the IRS the names, mailing addresses, and your written permission to disclose. Keep copies for any mortgage lender, landlord, or business partner who saw the lien.
Other Steps
The IRS should also abate any lien filing fee it charged you. If the erroneous lien caused real financial harm, IRC Section 7432 allows a damages claim when the IRS knowingly or negligently fails to release a lien it should have released, and other remedies may apply. You can also ask for withdrawal of the notice in addition to the release, which further corrects the public record.
If you received Letter 544 and the lien is still causing problems, call us at (813) 229-7100.