Direct Debit installment agreement

Discharging, Withdrawing, And Subordinating A Federal Tax Lien

A federal tax lien is the government’s legal claim against your property when a taxpayer neglects or fails to pay a tax debt. A federal tax lien exists after the IRS assesses liability, i.e. puts a balance due on its books, and sends the taxpayer a Notice and Demand for Payment, a bill that explains how much tax is owed. If the full debt isn’t paid in a timely manner, the IRS files a Notice of Federal Tax Lien, a public notice, to notify creditors and other interested parties that the government has a legal right in a taxpayer’s property. When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist: