Tax Lien Facts
Federal Tax Liens are filed against your property as a security or payment for the tax money you owe. Liens are also used to notify creditors that the government has a claim on your property. Courts use federal tax liens to establish priority in bankruptcy proceedings or real estate sales. But be careful. Federal Tax Liens may ruin your credit. You may not be able to buy a house or a car, get a new credit card, or sign a lease.
If the government has issued a federal tax lien against you, click here to contact tax lien attorney near you to get a free legal review.
The government uses federal tax liens to try to recoup the money you owe. Generally, a federal tax lien can only be issued after the government has assessed the liability, sent you a notice and demand for payment, and you have not paid your debt within 10 days. Once the government files a federal tax lien, it applies to all your property like your house and car.
By law, the government must notify you within 5 days that it has placed a lien on your property.
You have several options for fighting a federal tax lien. You may ask an IRS manager to review your case. You can also request a "Collection Due Process" hearing. A qualified Tax Lien attorney may be able to help you fight a federal tax lien.
The federal tax lien will only be removed if you have paid your debt or if the government made a procedural mistake. The lien will generally be released within 30 days.
Remember, the government may not file a Federal Tax Lien if:
You paid your debt before the lien was filed, The lien was filed while you were in bankruptcy, The time to collect the tax lien has expired, You did not have the chance to dispute the liability.
