IRS Lien on Back Taxes

Last updated on May 23, 2023

The federal tax lien is an aggressive collection tactic of the IRS. Under a tax lien, the IRS claims right to the property and/or asset of a taxpayer under tax debt to secure its payment. The IRS moves to the placement of a tax lien if their notices regarding the payment of IRS back taxes remain unanswered. If after repeated reminders, the taxpayer does not begin resolution efforts with the IRS, they proceed to seizing the property/assets of the taxpayer to ensure that the tax debt is paid.

Before the placement of the lien, the IRS sends the last notice The Final Notice of the Intent to Levy and Your Right to a Hearing. If the recipient does not contact the IRS for tax debt resolution within 30 days from the date on the notice, the lRS may anytime place the lien.

A tax lien can be removed or its placement stopped if immediate efforts are made to resolve the tax debt. Taxpayers that cannot pay their entire tax debt amount should seek resolution using IRS payment plans that allow back taxes reduction and postponement of payment.