It was released in November 1981 through Alternative Tentacles as a 7-inch single with "Moral Majority" as the B-side.

The single included a free armband with a crossed-out swastika.

While some have claimed the song was written as a reaction to far-right punk subcultures such as Nazi punk or the white power skinhead movement,[1] Jello Biafra has stated the initial premise of the song was about violence at punk shows, summarizing it as, "You violent people at shows are acting like a bunch of Nazis".

[2] The lyrics condemn the infighting among punks for weakening the prospect of rebelling against far-right agitators, and that "in a real Fourth Reich, [they'd] be the first to go.

"[3] In the opening of the In God We Trust, Inc. version of "Nazi Punks Fuck Off", lead singer Jello Biafra mentions English producer Martin Hannett, who had worked with Joy Division and Buzzcocks, accusing him, tongue-in-cheek, of having "overproduced" the recording.