A Federal Tax Lien marks the IRS' priority on your real and personal property against all other creditors and gives them the right to seize and sell such property subject to prior encumbrances. Prior to such seizure, the IRS must make an assessment and make demand for payment. And if you don't pay within the time specified in the first notice, they have the right to begin enforcement proceedings.

The IRS will release a Federal Tax Lien when it is fully satisfied. They will do this 30 days after full payment or immediately if paid in cash or the equivalent of cash. They will also release a lien upon the posting of a cash bond or upon giving the IRS a mortgage on real property whose fair market value is twice the value of the tax debt. Both the mortgage and the bond must stipulate payment terms over an agreed upon time frame.

A Federal tax lien can also be withdrawn if one of the following applies:

  • It was filed too soon or not in accordance with IRS regulations;

  • It speeds up the actual collection process; or it is determined it is in the best interest of the taxpayer and the IRS.

A taxpayer can also appeal the filing of a Federal Tax Lien. The IRS must notify you that a Federal Tax Lien has been filed within five days after the lien is filed. Some of the issues an appeal can be based upon include but are not limited to the following:

  • The tax debt owed was paid prior to the Federal Tax Lien being filed;

  • The tax was assessed and the Federal Tax Lien filed while the taxpayer was in bankruptcy;

  • A procedural error was made during the assessment;

  • The statute of limitations on the debt had expired before the Federal tax lien was filed; or the taxpayer was not given an opportunity to dispute the liability.

  • If you have a Federal tax liability, and you cannot fully pay all you owe at this time, IRSHelp may be able to help in keeping that Federal Tax Lien off the public records of your county courthouse.

Find A Local Tax Professional Call 1-800-IRS-HELP

Get Tax Help Now

With local tax representatives in your area, we can meet with you face to face, to help you resolve your IRS and State tax problems.
Call 1-800-IRS-HELP and speak with a friendly tax professional.

We will represent you before the taxing authorities - instead of hassling you, they will need to work through us.