A tax lien is a lien imposed on property by law to secure payment of taxes owed to the state or to the IRS.

By filing a Notice of Federal Tax Lien, the IRS enforces its interest in taxpayer’s property as collateral against tax debt. An IRS tax lien is a claim against taxpayer’s property, including property that is acquired after a lien is filed. The lien, by law, takes precedence over any other creditors in situations, such as bankruptcy proceeding or sale of real estate. Once an IRS tax lien is filed, it will appear on your credit report and it will negatively affect your credit rating. Therefore, it is important that you work to resolve your IRS tax debt as quickly as possible. Once a lien is filed, the IRS generally cannot issue a release of the lien until the taxes, penalties, interest, and other fees are paid in full.