Government Tax Liens

The United States government is very serious about collecting any and all personal, business and property taxes owed to them. Failure to pay due taxes can result in a Government Tax Lien on all personal property (cars, boats, RV's, jewelry, etc), and real estate currently owned by the delinquent taxpayer, as well as personal property and real estate purchased in the future.

Government tax liens are a legal claim to your property as payment for your tax debt. Until the debt is paid in full, the lien prohibits the owner from either selling, or financing their property.

Federal tax liens may be filed after the following has been done:

  • liability assessed
  • a notice or demand of payment (which clearly states the amount of taxes you owe) is sent to and received by the taxpayer
  • the tax payer refuses to pay the debt in full within the 10 day waiting period

Once these requirements are met, a lien is issued by the Federal Government for the amount of the tax due, plus penalties. Since federal tax liens take precedence over all other property liens, all creditors are notified when a lien is submitted. Federal tax liens attach all of your property until your debt is paid including any future property you may acquire after the lien is filed.

The full amount of every Federal Tax Lien is a matter of public record until it is paid in full, however, you can obtain a current payoff amount anytime by calling 1-800-913-6050. A formal letter clearly stating the current amount due will then be mailed to the debtor by an IRS employee.

Once a tax debt has been paid, the federal tax lien will likely be released within 30 days after payment is made (including the original taxes due, interest and penalties), and appropriate paperwork completed and filed; the debt has been adjusted and satisfied; or the debtor submits a bond to the IRS guaranteeing payment.

However, it is important to note that it is not the government's responsibility to automatically release a tax lien. After satisfying their debt, the taxpayer must file a Request for Release of Federal Tax Lien form. In the event the taxpayer fails to file the form, the IRS generally releases the lien approximately 10 years after it has been assessed if it has not been filed a second time.

In the event that a taxpayer feels that a federal tax lien has been unjustly filed on their property, they have the right to file an appeal (within 5 business days of notice), with the Office of Appeals. You may request a hearing if:

  • you paid all of the taxes due before the lien was filed
  • the tax due was assessed and the lien filed while you were in bankruptcy
  • a procedural error was made in your assessment
  • the time to collect the tax has expired
  • you did not have the opportunity to dispute the assessed liability
  • you wish to discuss collection options
  • you wish to make spousal defenses

Following the collection due process hearing, the IRS Office of Appeals will issue its decision. In the event you not agree with its determination of your case, you have the right to appeal a second time with a judicial review in a court of proper jurisdiction.

For more information regarding Federal Tax Liens and taxpayer's rights contact the Centralized Lien Unit at 1-899-913-6050.

Government Tax Lien Sales State Tax Liens County Tax Liens