What Is A Federal Tax Lien

What Is A Federal Tax Lien

Federal Tax Lien Definition

What is a federal tax lien? It’s a tax lien that is a federally authorized lien that is applied by the government on a person’s assets that have unpaid back taxes. This tax lien is typically applied by the IRS in order to obtain payment for the back taxes or they can come after financial and property assets. A federal tax lien is different than a non government lien as private companies are the lien holders on assets or property.

How to Remove a Federal Tax Lien

1. The first option on how to remove a federal tax lien is your outstanding or back taxes that are due. Once they are paid the IRS will release the federal tax lien within 30 days.
2. The second option is to send in a written request to the IRS to remove your federal tax lien
3. Contact a 3rd party tax relief company to help you remove your tax lien with the IRS

Follow Up With The Credit Reporting Agencies That Your Tax Lien is Removed

It’s important to note that you follow up with the IRS after your tax debt is paid off as sometimes this can be overlooked by them. They typically take 30 to 45 days to remove the tax lien from your public record. It is also best practice to follow up with the major credit reporting agencies to insure they’ve received the release of your tax lien. This can affect your ability to obtain credit, or buy property if the lien is on your credit report. The major credit reporting agencies are Experian, Equifax and TransUnion.

You can use the above form to perform a tax lien record search online. Enter your full name and state of residency to begin. If you have any additional questions or concerns about your tax lien then you can also contact the IRS directly.