Tax Lien 101: What to Expect and How to Deal With Having One | Axiom Tax Resolution Group

When you own a piece of real estate or other assets and fail to pay assessed taxes owed to the government, you acquire a court order called a tax lien. A tax levy could come next if you don’t pay those taxes, which refers to the actual seizure of your property. To understand what having a tax lien actually means, what could happen next, and how to get it removed, use this article as your guide.

What Should You Expect After Having a Tax Lien?

If you owe back taxes and are unable to pay them off, the IRS or state taxing authority will send a written letter to notify you after the tax lien has been filed. Here are some situations to expect after that could happen next:

  • Your Creditworthiness Can Get Ruined

Although tax liens may not appear on your credit report, the IRS can still file a public notice informing creditors of the tax lien. Once they know the government has a right to your property, it could ruin your creditworthiness and even jeopardize your ability to secure a loan. As a result, it can also affect your refinancing or home buying process. 

  • It Can Cost You a Lot of Time

Besides running the risk of having a damaged credit rating, prepare to spend hours on hold with the call center. This can happen if you become one of the many overdue taxpayers that the IRS funnels into its automated collection system. If you get assigned to a revenue officer, expect to allot time in your schedule for in-person visits.

  • Get Ready for a Tax Levy

You will receive a Notice for Demand for Payment from the IRS if you refuse or neglect your responsibility to back the taxes you owe. At least 30 days before a tax levy takes effect, you will also get a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. If you are facing a levy, your property will be forcibly seized legally to satisfy your tax obligations and cover your outstanding tax bills.

How Do You Get Rid of a Tax Lien?

Paying your taxes is the only way to get rid of a tax lien or tax levy. You also have to cooperate and communicate with the IRS. Besides paying your taxes, here are your other options to have a lien or levy removed:

  • File an Appeal

If you think you need a review of a lien or levy notice, you can ask for a collection due process hearing. You also have the right to ask for a conference and ask the IRS Office of Appeals to review your case if you do not agree with the decision about a lien or levy.

  • Ask For an Offer

Another option is to offer to settle your taxes for less than the amount you owe. However, take note that you have to file all of your tax returns and make the required tax payments for the year to be considered. If you get lucky, your offer can be part of the applications that get accepted.


Dealing with receiving a tax lien or tax levy can be stressful and even worrying, especially if you don’t know what to do or expect. Thankfully, you have several options to stop it and continue to take charge of your financial situation. If you need further assistance handling your tax issues, consider reaching out to tax relief solutions.

Get the tax relief help you need by seeking tax resolution services. At Axiom Tax Resolution Group, our trusted tax professionals can help you address your problems with the IRS. Get in touch with us to know and discuss your options!