Glossary

Tax lien

A federal tax lien is the government's legal claim against all of a taxpayer's property that arises automatically when tax is assessed and not paid after demand; the public notice of federal tax lien is the filing that makes it visible to others.

How it works

A federal tax lien is the government’s claim against all of a taxpayer’s property, arising automatically when tax is assessed and unpaid after demand. It is silent until the IRS files a notice of federal tax lien in public records. Liens are released when the debt is paid or the collection period expires, and can be withdrawn, subordinated, or discharged from specific property on request.

Why it matters

The filed notice, not the lien itself, is what affects credit, closings, and financing, and the filing can be appealed within 30 days.

Related: notice of federal tax lien. Read more: what IRS tax liens are.

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Where this comes up in our work

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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