Federal Tax Lien Attorney
A federal tax lien is the government’s legal claim against a taxpayer’s property and rights to property after a tax balance is assessed, payment is demanded, and the liability remains unpaid.
The IRS may also file a Notice of Federal Tax Lien (NFTL) in public records to establish legal priority over other creditors. Understanding your rights and available relief options is essential to protecting your assets, real estate, and financial future.
Federal Tax Liens Require a Specific Legal Strategy
A tax lien is fundamentally different from an IRS levy. A lien secures the government’s legal claim against your assets, whereas a levy is an active enforcement action used to seize money or physical property. Addressing an NFTL may require resolving the underlying tax liability, challenging an incorrect filing, requesting an appeal, or applying for a formal release, withdrawal, discharge, or subordination.
Todd S. Unger helps individuals and business owners evaluate what an IRS lien means for their financial health, how it affects real estate or business operations, and which legal remedy provides the most effective path forward.
Statutory Tax Liens vs. Public Notice of Federal Tax Lien (NFTL)
A federal tax lien arises automatically by operation of law once the IRS assesses a tax balance, sends a notice and demand for payment, and the taxpayer fails to pay in full. In contrast, the Notice of Federal Tax Lien (NFTL) is a public document filed in county or state records to alert potential buyers, lenders, and creditors of the government’s priority claim.
This distinction is critical: satisfying a debt, releasing a lien, withdrawing a public notice, discharging specific property, or subordinating the government’s claim are distinct legal remedies with vastly different outcomes for your credit and asset flexibility.
How a Federal Tax Lien Impacts Property & Business Transactions
A public NFTL attaches to all existing real estate, personal property, and rights to future property acquired during the lien’s duration. This can severely disrupt financial and business operations across multiple scenarios:
While a tax lien does not automatically prevent every asset sale or loan approval, title companies and commercial lenders will require official IRS approval or satisfaction before closing can proceed.
Federal Tax Lien Relief Options
Selecting the proper lien remedy depends on your financial objective. A taxpayer needing to clear title to sell one property requires a completely different mechanism than someone who has fully satisfied their balance or seeks to remove public records.
1. Lien Release
A formal release terminates the lien after the liability has been fully satisfied, settled, or becomes legally unenforceable due to the expiration of the statutory collection period. The IRS typically issues a release within 30 days of full payment.
2. NFTL Withdrawal
Withdrawal removes the public Notice of Federal Tax Lien from public records, making it appear as though the notice was never filed. This is vital for credit repair, although it does not automatically eliminate the underlying tax debt.
3. Discharge of Specific Property
A discharge removes the lien from a specific piece of property (such as a home being sold) while leaving the lien in place for all other assets. This allows real estate closings to proceed while net proceeds are applied toward the tax debt.
4. Subordination
Subordination allows another lender to step ahead of the IRS in priority. This is essential when refinancing a mortgage or securing business loans that ultimately improve the taxpayer’s ability to pay the IRS.
5. Certificate of Nonattachment
If an NFTL was erroneously filed against you due to a similar name or confused identity, a Certificate of Nonattachment proves to title companies and credit bureaus that the tax lien does not attach to your personal property.
Selling or Refinancing Property Subject to an IRS Lien
Executing a real estate closing or mortgage refinance with an active NFTL requires precise coordination between the taxpayer, tax counsel, title officers, and the IRS. Our firm manages the complete 10-step administrative protocol:
Appealing an NFTL Filing (Letter 3172)
After filing an NFTL, the IRS is required by law to issue Letter 3172 (Notice of Federal Tax Lien Filing and Your Right to a Hearing). This notice triggers a strict 30-day statutory window to request a formal Collection Due Process (CDP) hearing.
A timely CDP hearing request stops administrative collection and allows you to challenge the filing’s appropriateness, propose alternative resolution options, or seek lien withdrawal before an independent Appeals Officer. Learn more about our representation on our Collection Due Process hearing page.
Federal Tax Lien vs. IRS Levy
It is vital to distinguish between a lien and a levy. A lien acts as a security interest securing the government’s claim, while a levy represents actual property seizure (such as emptying bank accounts or garnishing paychecks).
If the IRS has frozen your bank accounts, levied wages, or issued final collection threats, immediately visit our dedicated page for IRS levy and wage garnishment help.
Resolving the Underlying Tax Debt Behind the Lien
Long-term tax lien relief ultimately relies on resolving the underlying tax liability. Negotiating an administrative resolution with the IRS protects your assets while establishing a structured path toward total lien release:
Establish a structured direct-debit payment plan, which may qualify you for automatic NFTL withdrawal.
Settle your complete back-tax balance for less than the full amount owed based on your financial capacity.
Protect business accounts, accounts receivable, and equipment from commercial federal tax liens.
Frequently Asked Questions
Answers to common questions regarding federal tax liens, releases, and property transactions.
Get Expert Help With a Federal Tax Lien
If the IRS filed a Notice of Federal Tax Lien or a lien is threatening a property closing, refinancing, or credit standing, work directly with tax attorney Todd S. Unger to protect your interests.