Receiving a Notice of Federal Tax Lien (NFTL) from the IRS is one of the most alarming letters a taxpayer can open. If you’ve gotten one — or you’re worried you might — this guide will walk you through exactly what a property tax lien is, what’s at stake, and what you can do right now to protect yourself.
At Sara Lane Tax Resolution, we help individuals and business owners deal with IRS liens. Here’s what you need to know.
What Is a Property Tax Lien?
A tax lien is a legal claim the IRS — or a state tax authority — places on your property when you fail to pay a tax debt. Think of it as the government staking a legal flag on everything you own until the debt is resolved.
A lien can attach to:
- Your home and other real estate
- Bank accounts and financial assets
- Business property and equipment
- Property you acquire after the lien is filed
This last point surprises many people: the lien doesn’t just cover what you own today — it follows you into the future until the debt is cleared.
What Happens Once a Tax Lien Is Filed?
Once the IRS files a Notice of Federal Tax Lien, several serious consequences kick in immediately:
- It becomes public record. Anyone — lenders, employers, title companies — can see it.
- The IRS jumps to the front of the line. They have a legal right to your property before other creditors.
- Selling or refinancing your home becomes extremely difficult — often impossible without first addressing the lien.
- It can escalate to a tax levy, where the IRS can actually seize and sell your property to collect what’s owed.
The difference between a lien and a levy is important: a lien is a claim against your property; a levy is the actual seizure of it. A lien is the warning — a levy is the action. And one can lead to the other if you don’t respond.
How Sara Lane Tax Resolution Can Help You Resolve a Tax Lien
There is no single solution that works for every taxpayer — the right approach depends on your specific financial situation, the amount owed, and your goals. At Sara Lane Tax Resolution, we analyze your case and pursue the strategy most likely to get you the best outcome. Here are the tools we use:
🔹 Lien Subordination
We work with the IRS to allow other creditors — like a mortgage lender — to take priority over the tax lien. This can make it possible for you to refinance your home even while the lien exists, giving you access to funds to pay down the debt.
🔹 Lien Discharge
A lien discharge removes the lien from a specific piece of property. This is especially useful if you’re trying to sell your home — the sale can proceed, and the IRS receives its portion of the proceeds.
🔹 Offer in Compromise (OIC)
If we can demonstrate that your tax debt creates an undue economic hardship, we may be able to negotiate a settlement with the IRS for less than the full amount owed. When an OIC is accepted, the lien is ultimately released.
🔹 Installment Agreements
Entering into a structured, IRS-approved payment plan demonstrates good faith and can lead to a lien withdrawal — especially under the IRS’s Fresh Start Program guidelines.
🔹 Appeals and Error Challenges
Sometimes liens are filed in error, or filed without proper procedure. If that’s your situation, we can challenge the lien through IRS appeals and get it removed entirely.
⚠️ Time matters. The longer a tax lien sits unaddressed, the harder it becomes to remove — and the closer you get to a levy. Every day of inaction increases your risk.
Frequently Asked Questions About Tax Liens
Will a tax lien hurt my credit?
While the three major credit bureaus removed tax liens from credit reports in 2018, a federal tax lien is still public record. Lenders and title companies often search public records separately, which means a lien can still affect your ability to borrow or close a real estate transaction.
How long does a federal tax lien last?
The IRS generally has 10 years from the date of assessment to collect a tax debt, and the lien lasts for that entire period unless it is released, withdrawn, discharged, or subordinated before then.
Can a tax lien be removed without paying the full amount?
Yes — through programs like an Offer in Compromise, certain lien releases, or proven hardship, it’s possible to resolve the underlying debt for less than the full amount and have the lien released. This is exactly the kind of negotiation Sara Lane Tax Resolution handles on your behalf.
Don’t Wait — Get a Free Consultation Today
If you’ve received a Notice of Federal Tax Lien, or you believe one may be coming, now is the time to act. Sara Lane Tax Resolution offers a free, confidential consultation where we’ll review your situation, explain all your options, and create a personalized plan to get the lien resolved and your financial life back on track.
📞 Call us today #850-462-2630
