Austin Tax Blog


Federal tax lien is quite an easy concept. But first, in order to fully grasp the concept of a federal tax lien, it is important to know what a lien is and how it differs from levy. Since lien and levy are commonly discussed in Credit Transactions, it is important to know that they are not just applied to mortgages and in cases of insolvency.

Rather, liens are also imposed upon in cases of failure to pay tax liabilities.

Federal Tax Lien

Federal Tax Lien

Imagine you have bought a property, you cultivated it, you put up a house and a nice garden, and you invested so much on that property. However, you forgot to pay your real property taxes. This is where the government comes in. The government, then, places a legal claim against your property due to your neglect in paying your taxes.

This is a lien. The government uses lien in order to secure its interests in all your property. In order to be absolved of the lien imposed by the government, you have to pay your taxes. The federal tax lien, therefore, serves as a protection for the government to ensure that you fulfill your obligations.

You will be notified of your tax liabilities and failure to do so will result to foreclosure. Otherwise, the government may foreclose your properties, sell it to an auction, and then use the proceeds from the sale and consider it as your form of payment to the government.

It is also important to take note that such federal tax lien is not limited to real property, it can also be applied to personal properties such as movable properties and may also be imposed upon your assets.


A lien is, simply put, the protection placed upon the creditor to ensure that the debtor pays or fulfills his obligation. In applying to federal tax lien, the government merely protects its interest on your property if you fail to pay your taxes.

Furthermore, once a lien has been declared by the IRS and was duly filed, the lien attached to your property turn to be a matter of public record. A levy, on the other hand, is a method where the government acquires your property to answer for your tax debt.

How to Remove the Lien

How to Remove the Lien

In order to get rid of your lien, you only have to do one thing, pay your taxes. You can also avoid a lien if you choose to have it filed in the IRS and paying your taxes in full amount. However, if you have difficulties in paying your taxes in full, the IRS have given several options you can choose from to slowly relieve of your property from tax liabilities.

You can look up to their website and you will see different installment options you can choose from to slowly ease of your taxes. Once you have fully paid your taxes in the IRS, you will have to wait for thirty days for the IRS to remove the lien and declare you as paid.