Federal Tax Lien

What is a Federal Tax Lien?

A Federal Tax Lien affects your financial assets, personal property and your real estate property. Tax liens can vary based upon your individual situation. They are the government’s way of protecting their interest in case you fail to pay your tax debt in a timely manner. If you fail to pay the IRS timely, a lien will be attached to all of your current or future assets until the offending tax issue is resolved. If you do not address the tax debt in a timely manner, the lien may develop into a levy where the IRS has the ability to seize said assets.

What Are Assets?

Real estate property

Vehicle

(car, boat, motorcycle, etc.)

Bonds

Stocks

Cash

Bitcoin

Does a Tax Lien affect My Credit Score?

Since April 2018 all three tax bureaus (Equifax, TransUnion, and Experian) stopped reporting liens on credit reports. This means that Federal Tax Liens should not affect your credit score irregardless of whether or not the lien has been satisfied. However, even if a lien does not appear on your credit report, it still does need to be needs to be resolved since they are public records and can appear on other consumer reports.

How Do I Know If I Have a Federal Tax Lien?

The IRS has a filing process before sending out a notice. They will:

If you do not pay the tax bill sent by the IRS, then the IRS will send out a lien notice.

How to Avoid a Tax Lien

The best option is to pay the entire debt in full. However, if you are having trouble paying the full amount of your tax debt due to financial stress, the IRS offers a multitude of payment options in order to avoid a lien.

Some options are:

Although it may seem like a federal tax lien may be looming, there is always an available option that may help you avoid the Federal Tax Lien altogether. Visit our IRS problem resolution page for more of our services.

I Have Received a Notice, What Do I Do?

First, do not panic!Although this may be your first reaction to receiving a Federal Tax Lien notice from the IRS, it is possible to find a less painful resolution to your tax problem. You can pay the entire amount owed to the IRS in full. If that is not possible, then there are several other options. They are as follows:

To learn more about liens, check the following :

Next Steps:

Whether you believe you may receive a notice from the IRS or you have already received a notice from them, it is extremely important not to ignore it. This will only make a bad situation worse. You still have several options available depending on your and/or your business’ circumstances. Call us today to discuss your options and the best way to move forward for your specific situation.

Scroll to Top