Northwind Law
Tax Liens attorney

Tax Liens Attorneys

Experienced legal representation for tax liens matters across all 50 states.

Request a ConsultationCall: 1-844-6-NWIND-1 (1-844-669-4631)
~300,000
Federal tax lien notices filed (FY 2023)
Source: IRS Data Book 2023
10 years from assessment
IRS collection statute period
Source: IRC Section 6502
Within 30 days
IRS must release lien after payment
Source: IRC Section 6325(a)
$10,000+
Threshold for lien filing consideration
Source: IRS Internal Revenue Manual 5.12.2

About Tax Liens

A federal tax lien is a legal claim by the United States government against all of a taxpayer's property and rights to property — both current and future — when a tax debt remains unpaid after the IRS sends a notice and demand for payment. The lien arises automatically under IRC Section 6321 when three conditions are met: a tax has been assessed, the IRS has sent notice and demand for payment, and the taxpayer has neglected or refused to pay. Once these conditions are satisfied, the lien attaches to everything the taxpayer owns, including real estate, personal property, vehicles, financial accounts, accounts receivable, and even future-acquired assets.

The IRS's filing of a Notice of Federal Tax Lien (NFTL) is a separate action that makes the lien public record and establishes the government's priority over other creditors. The NFTL is typically filed in the county recorder's office where the taxpayer's real property is located and with the state's secretary of state for personal property. Once filed, the lien appears in title searches and, although no longer reported on standard credit reports since 2018, it can still be discovered by lenders, employers, and business partners through public records searches.

Federal tax liens have far-reaching consequences. They make it extremely difficult to sell or refinance real estate because title companies require lien satisfaction or subordination before closing. They impair the ability to obtain business financing, secure government contracts, and maintain professional licenses. For businesses, tax liens can destroy supplier and customer relationships and signal financial distress that drives away partners and investors. Understanding your options for addressing a tax lien — including lien withdrawal, release, subordination, and discharge — is essential to protecting your assets and financial future.

Why You Need a Tax Liens Attorney

Tax liens matter because they represent one of the most powerful collection tools available to any creditor in the American legal system. Unlike most creditors, the IRS does not need to go to court to place a lien on your property — it arises by operation of law. A federal tax lien has priority over almost all subsequent creditors, meaning the government gets paid before most other claims against your assets. This can make it impossible to sell property, close business transactions, or access equity that you have built over a lifetime.

The practical impact of a tax lien extends beyond the immediate financial consequences. Business owners may find that customers and vendors are unwilling to work with a business encumbered by a federal tax lien. Real estate professionals may be unable to close transactions. Professionals in regulated industries may face licensing issues. Even after the underlying tax debt is resolved, the effects of a filed lien can linger if the filing is not properly withdrawn. Working with a tax attorney to address a federal tax lien promptly can minimize damage, preserve asset value, and accelerate your return to financial stability.

Common Tax Liens Cases

Lien Release After Full Payment

Ensuring the IRS releases the federal tax lien within 30 days of full payment or satisfaction of the tax debt, and correcting any delayed or improperly maintained liens.

Lien Withdrawal

Requesting that the IRS withdraw the Notice of Federal Tax Lien as if it was never filed, available when the taxpayer enters a direct debit installment agreement or when the filing was premature or not in accordance with procedures.

Lien Subordination

Obtaining IRS agreement to make the federal tax lien secondary to another creditor's interest, typically to allow the taxpayer to refinance a mortgage or obtain business financing.

Lien Discharge

Requesting removal of the lien from a specific piece of property to allow a sale or transfer, while the lien remains attached to the taxpayer's other assets.

Collection Due Process Hearing

Challenging the filing of a Notice of Federal Tax Lien through a Collection Due Process hearing, where the taxpayer can dispute the lien, propose alternatives, and raise defenses.

Lien Expiration Monitoring

Tracking the collection statute expiration date and ensuring that the IRS properly releases liens when the ten-year collection period expires.

Typical Tax Liens Case Timeline

1

Lien Assessment & Transcript Review

1-2 weeks

The attorney reviews the filed NFTL, obtains IRS account transcripts, verifies the underlying tax liability, and identifies all properties and assets affected by the lien.

2

Strategy Development

1-2 weeks

Based on the analysis, the attorney determines the best approach — lien release, withdrawal, subordination, discharge, or resolution of the underlying debt to address the lien.

3

Application Preparation & Submission

1-3 weeks

The attorney prepares and submits the appropriate IRS form — Form 12277 for withdrawal, Form 14135 for subordination or discharge — with supporting documentation.

4

IRS Review & Processing

30-120 days

The IRS reviews the application. Lien releases after full payment must be processed within 30 days by law. Withdrawal, subordination, and discharge requests may take 30 to 120 days.

5

Resolution & Recording

1-4 weeks

Once approved, the IRS issues the appropriate certificate, which is recorded in the same office where the NFTL was filed to update public records.

Know Your Rights

  • You have the right to receive a Collection Due Process notice within five business days after the IRS files a Notice of Federal Tax Lien, providing you the opportunity to request a hearing.
  • You have the right to a Collection Due Process hearing where you can challenge the appropriateness of the lien filing, propose alternative payment arrangements, and raise defenses to the underlying liability.
  • You have the right to have the IRS release the lien within 30 days after the tax debt is fully paid, the assessment becomes legally unenforceable, or an accepted bond is posted.
  • You have the right to request lien withdrawal if you enter a direct debit installment agreement that will satisfy the debt, or if the IRS did not follow proper procedures.
  • You have the right to request lien subordination to allow refinancing or other transactions that will facilitate payment of the tax debt.
  • You have the right to request discharge of the lien from specific property to allow a sale, provided the proceeds will be applied to the tax debt or the government's interests are adequately protected.

What to Look for in a Tax Liens Attorney

When seeking an attorney to address a federal tax lien, prioritize experience with IRS collection procedures specifically. Lien issues require knowledge of both tax law and real property law, and the interplay between federal and state lien priority rules. Ask the attorney how many lien withdrawals, subordinations, and discharges they have obtained and what strategies they use to resolve lien issues efficiently.

Look for an attorney who understands the full range of options available. Many taxpayers are unaware that lien withdrawal — as opposed to mere release — is available and that it removes the NFTL from public records as if it was never filed. An attorney should also be able to advise on whether resolving the underlying tax debt through an offer in compromise or installment agreement will affect the lien, and how to coordinate lien relief with the overall resolution strategy. Timeliness matters — if you need to close a real estate transaction or secure financing, the attorney should have experience expediting IRS responses.

Questions to Ask Your Tax Liens Attorney

  1. 1Can the federal tax lien on my property be withdrawn, and what are the requirements for withdrawal versus simple release?
  2. 2Is the underlying tax debt accurate, or should we challenge the assessment before addressing the lien?
  3. 3How close is my tax debt to the collection statute expiration date, and will the lien automatically release when it expires?
  4. 4Can you help me obtain lien subordination so I can refinance my mortgage and use the proceeds to pay down the tax debt?
  5. 5How quickly can you get the IRS to act on a lien discharge request if I have a pending real estate transaction?
  6. 6What is the total cost to resolve the lien issue, including addressing the underlying tax debt?

Understanding Tax Liens Legal Costs

Attorney fees for tax lien matters vary based on the type of relief sought and the complexity of the underlying tax situation. Straightforward lien release requests (after full payment of the tax debt) typically cost $500 to $1,500. Lien withdrawal applications typically cost $1,500 to $3,500 including preparation of the request and follow-up with the IRS. Lien subordination and discharge applications — which require detailed financial analysis, property valuations, and IRS negotiation — typically range from $2,500 to $7,500. If the strategy involves resolving the underlying tax debt through an installment agreement or offer in compromise, the overall fees are higher and reflect the combined scope of work. For urgent matters requiring expedited IRS processing — such as pending real estate closings — attorneys may charge a premium of $500 to $2,000.

Video Resources

These videos are provided for informational purposes only. The attorneys and organizations featured are not affiliated with or endorsed by Northwind Law.

IRS Collections Process — Liens and Levies Explained

Help From A Former IRS Agent

Federal Tax Lien vs Tax Levy — What's the Difference?

The Tax Couple

What Happens If You Don't Pay Your Taxes? IRS Collection Actions

CNBC

Frequently Asked Questions About Tax Liens

A tax lien is a legal claim against your property that secures the government's interest in your assets. It does not involve the seizure of property. A tax levy is the actual seizure of property — bank accounts, wages, or physical assets — to satisfy a tax debt. A lien is passive (a claim), while a levy is active (a taking).

Citations & Sources

  1. [1]
    A federal tax lien arises when any person liable to pay any tax neglects or refuses to pay the same after demand. The lien attaches to all property and rights to property belonging to such person. — IRC Section 6321
  2. [2]
    The IRS shall release a lien within 30 days after the liability is satisfied, becomes legally unenforceable, or an acceptable bond is provided. — IRC Section 6325(a)
  3. [3]
    The IRS filed approximately 300,000 Notices of Federal Tax Lien in fiscal year 2023, a significant decrease from over 1 million annually filed in the early 2010s. — IRS Data Book 2023
  4. [4]
    The IRS will consider withdrawing a Notice of Federal Tax Lien if the taxpayer enters into a direct debit installment agreement, or if the filing was premature or not in accordance with IRS procedures. — IRS Internal Revenue Manual 5.12.9

Ready to Discuss Your Tax Liens Case?

Speak with a experienced tax liens attorney. Free consultations available.

Request a Consultation1-844-6-NWIND-1 (1-844-669-4631)