Understanding The Tax Liens and How to Resolve Them

Having tax problems or outstanding debt with the IRS isn’t necessarily a bad thing as long as you act quickly and you pay for it as soon as possible. But if that debt is left on its own, it can lead to more serious issues like a tax lien, or worse, a levy. If you’re worried about a potential tax lien on your home, it’s important to take action and update all your unfiled tax returns. If you already have a lien placed on your property, then here’s a simple guide to help you understand what it entails and what you can do about it.

What is a Tax Lien?

A tax lien is basically a claim made on a property in order to satisfy a debt. The federal government and state governments can put a tax lien on your property if you have any unpaid tax debts. The lien can be placed on any property, not just real estate.

Everything starts with your filing of taxes. If you aren’t doing your taxes and filing them on time, you risk having a lien imposed on your property. Before that happens, however, the IRS will first notify you that you owe tax funds through something called a Notice and Demand for Payment. It’s not advisable to ignore this notice since that’s when liens become part of the equation. You need to respond to it and pay your debt in full before the IRS files a public document called Notice of Federal Tax Lien.

What Happens When an IRS Tax Lien is Placed on My Home?

An IRS tax lien stifles your ability to utilize your home as a financial asset. In other words, you won’t be able to sell your home at all. In terms of refinancing or applying for a new mortgage, it can be extremely difficult since tax liens are a matter of public record. Lenders will know immediately if your home has a tax lien placed on it, and they’ll be reluctant to allow you to borrow any money. Even filing for bankruptcy won’t clear the lien.

The best way to resolve this is to stop running from the IRS. You need to face them and have them remove the lien on your house.

How Do I Get a Tax Lien on My House Removed?

The most sensible solution for a tax lien is to pay your tax bill. There’s really no escaping it. Once you pay your full tax debt, the IRS will release the lien within 30 days of the debt being paid. If you’re still unable to settle the full amount, other options are available, such as applying for a lien withdrawal. If you qualify for this, the IRS will allow you to settle your debt by paying in installments and have the payments debited directly from your bank account.

Another option is only applicable if you have enough equity in your home to satisfy your federal tax bill. When this happens, you may ask the IRS to discharge the lien and use your sales process to pay off your balance. You can then sell your house and remove the lien from it.


Having a tax lien imposed on your house is never a good sign. If you ever find yourself in such a situation, this guide should help you take the necessary steps to remove the lien on your property.

At Axiom Tax Resolution Group, we work directly with the IRS on your behalf to help solve all your tax issues. We believe that ignoring tax problems is a costly mistake. Our team is here to provide tax relief solutions that can help you resolve your tax issues. Contact us today to get started!