Federal Tax Lien

What is a Federal Tax Lien?

A tax lien affects your financial assets, personal property and your real estate. Tax liens can vary based on your individual situation and are the government’s way of protecting their interest in the case that you fail to pay your tax debt in a timely manner. If you do fail to pay the IRS on time a tax lien will attach to all of your current or future assets until it is addressed. If you do not address the tax debt in a timely manner the lien may turn into a levy where the IRS has the ability to seize said assets.

What Are Assets?

Real estate property


(car, boat, motorcycle, etc.)





Does a Tax Lien affect My Credit Score?

As of April 2018, all three tax bureaus (Equifax, TransUnion, Experian) removed tax liens from appearing on your credit report meaning that a tax lien should not affect your credit score whether or not it has been paid off. Although a tax lien does not appear on your credit score it still does need to be handled as they are still public records and may appear on other consumer reports.

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

The IRS will send you a Notice of Federal Tax Lien if you have one. The IRS has a filing process before sending out a notice of federal tax lien. They will:

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

How to Avoid a Tax Lien

If you can pay the entire debt at once, this is typically the best option 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 option available that may best fit your needs in order to avoid it. Visit our IRS problem resolution page for more services.

I have Received a Notice of Federal Tax Lien, What Do I Do?

It may seem as though there’s no relief if you’ve received notice of a tax lien short of paying the entirety of your debt off but this is not always the case. There are a few routes you can take after receiving a tax lien. A couple of options to relieve yourself of a tax lien are:

To learn more about Tax liens, check the following

Next Steps:

If you find yourself in danger of receiving a tax lien or have already received a notice, the most important thing to remember is not to ignore it. There are many options to avoid or relieve a tax lien depending on your and your business’s circumstances. Call us today to discuss your options and the best way to move forward for your specific situation.
Scroll to Top