Notice of Federal Tax Lien

A Notice of Federal Tax Lien is a public document filed by the Internal Revenue Service (IRS) to alert creditors about a taxpayer’s outstanding tax debt. Key points include:

1. Notifies the public of the government’s legal claim against a taxpayer’s property

2. Filed with local or state authorities where the taxpayer lives or has assets

3. Covers all property, rights to property, and future acquired property

4. Does not seize property but establishes priority for the IRS over other creditors

5. Can negatively impact credit scores and ability to sell or refinance property

6. Remains in effect until the tax debt is paid or becomes unenforceable due to time limits

This notice is a serious matter that can have significant financial consequences. It’s typically issued after the IRS has assessed the tax liability, sent a bill, and the taxpayer has failed to pay in full. To resolve a tax lien, taxpayers can pay the debt in full, enter into a payment agreement, or potentially qualify for other relief options. Seeking professional tax advice is recommended when dealing with a federal tax lien.