What is a Federal Tax Lien?

‍What is a Federal Tax Lien?

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‍A Federal Tax Lien is a legal claim against your property to secure payment of your tax debt.

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What is the Notice of Federal Tax Lien?

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‍A public notice to creditors. The IRS files the Notice of Federal Tax Lien with state and local authorities so they can establish the priority of their claim versus the claims of other creditors.

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Does the Federal Tax Lien show up on your credit report?

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‍The IRS does not report your tax debt directly to the consumer credit bureaus. Therefore, your tax lien will not be shown on your credit report. However, once a Notice of Federal Tax Lien has been filed, lenders may still search public records for your tax liens.

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How long does the Federal Tax Lien remain on your credit report?

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The IRS generally keeps the tax lien in place until you pay your taxes in full or have made other arrangements to pay off, reduce, or eliminate the debt and the IRS releases the lien.

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Will the Federal Tax Lien always be visible on your record?

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‍No, the IRS releases your lien no later than 30 days after your tax debt is paid.