Tax Resolution · Cleveland, OH

Federal Tax Lien.

A federal tax lien is the government’s legal claim against your property when a tax debt is not paid. It is different from a levy, which actually takes property.

How a lien arises and is filed

A lien arises automatically when the IRS assesses tax, sends a bill, and the bill is not paid. The IRS may then file a public Notice of Federal Tax Lien in public records to alert creditors. After filing, the IRS sends a notice of your right to a Collection Due Process hearing, which you generally must request within the deadline stated in that notice.

Ways to deal with a lien

  • Release: the IRS releases the lien within 30 days after the balance is paid in full or becomes legally unenforceable.
  • Withdrawal (Form 12277): removes the public notice, for example when it was filed in error or, in some cases, when you are in a direct debit installment agreement or have paid in full.
  • Discharge (Form 14135): removes the lien from a specific property, which can make a sale or refinance possible.
  • Subordination (Form 14134): lets another creditor, such as a mortgage lender, move ahead of the IRS so refinancing can happen.

Why it matters

A filed lien notice can make it harder to sell or refinance property or get credit, and it attaches to property you acquire later while it remains in effect. Resolving the underlying debt is the lasting fix.

Documents to gather

  • The lien notice and other IRS notices
  • Details of any property sale or refinance you are planning
  • Proof of payment if the balance is already paid

Please don’t send Social Security numbers, bank details or tax documents through the website chat or forms. We’ll arrange a secure way to share them.

How fees work

We quote a flat fee after the free consultation, once we know what the work involves, and agree the scope with you before any work starts. Amounts owed to the agency, and any agency fees, are paid to the agency, not to us. No one can promise a particular result: the agency decides, and our job is to present your case accurately and on time.

Frequently asked questions

Is a lien the same as a levy?

No. A lien is a claim that secures the debt; a levy takes the property to pay it.

Does paying in full remove the lien?

Paying in full leads to a release within 30 days. The public notice still shows it was filed, which is why some people also request a withdrawal.

Official sources

Last updated · General information, not tax or legal advice. Read the disclaimer.

Get in touch with us

Take control of your finances with JPC Advisers

Contact us today for a consultation and let’s build a secure financial future together!

Call now(216) 491-0800