An IRS lien is filed when after 3 things occur. First the tax liability is assessed by the IRS. Second, the IRS sends a Notice and Demand for Payment to the taxpayer. Third, the taxpayer fails to pay a Notice and Demand for Payment within 10 days. A lien is filed against real or personal property and is a matter of legal record at the courthouse. The lien attaches the current property you own, your rights to the property and even property acquired after the lien is imposed. A lien is serious because it can prevent you from selling or improving the property or obtaining credit. A lien can often be avoided by working with the IRS to come up with a reasonable debt settlement plan such as an installment agreement or selling some assets. The get the lien released, the entire tax debt must be paid off. This includes the taxes, penalties and interest. Some people choose to work with a tax attorney who understands the laws completely concerning the placement, withdrawal, and appeal of liens.