Is There a Federal Tax Lien Statute of Limitations?

When you neglect or fail to pay your federal taxes, the government implements a federal tax lien against your property. That includes any real estate, financial assets, or personal property.

There is a . This is when, by law, the IRS must wipe the debt off its books, leaving you free and clear. But waiting out that period comes with a price.

DoNotPay will help you understand the process.

What Is the Federal Tax Lien Statute?

The is a law. It establishes a ceiling on the amount of time that the dispute can stay on record. Before the lien expires, any party involved can initiate legal proceedings. But while there is a set date for the lien, the time for bringing legal action can vary across jurisdictions.

All liens involving the collection of debt have a statute of limitations.
Now, the limitations only apply to records of debt and credit reporting.
The expiration doesn't mean you no longer owe money.
Under certain circumstances, trying to make a payment or contact a collector can restart the clock on the limitation.

How to Remove a Federal Tax Lien

A federal tax lien can be detrimental to your financial future. That's why waiting out the statute of limitations is a risky venture.

You spend all your time ducking and dodging the agency's attempts to contact you.
Getting any sort of state or federal job will be in jeopardy.
It can prevent getting credit cards or buying a new house.
Any much-needed future tax returns will be taken away and applied to your debt.
The lien will prevent buying a new car or financing an engagement ring.

It makes sense to do what you can to remove a federal tax lien. Here are two ways you can dispute a federal tax lien.

Paying in Full	The easiest and best way to get rid of the lien is to pay your debt in full. There's a chance you could negotiate a settlement amount or create a monthly payment plan. The IRS may not remove the lien until the debt's paid in full. Once no longer in arrears, the IRS will release the lien within 30 days.
Proving an Unfair Lien	The other way to remove the lien is going to court and convincing a federal judge the lien is unfair. That's going to be a heck of a challenge. You'll have to prove you've done your best to pay despite the IRS and their claim.

Where Can I Find Lien Information?

No one has to inform you that a federal tax lien is in place. Most people find out at the worst possible time, such as when attempting to sell or finance the property.

If you owe taxes and have made no arrangements to pay the debt, and you own property, the chances of having a lien are high. You can find out by calling (or having your tax counsel call) the Centralized Lien Unit at the IRS (800.913.6050).

Does a Federal Tax Lien Hurt My Credit Score?

No, it does not. Not too long ago, the government passed a law that prevents certain collectors from reporting the debt to credit bureaus. The IRS is one of the affected. So, the IRS lien has no impact on credit scores. But we cannot stress enough that doesn't mean anyone should ignore all the other risks involved with a tax lien.

Can I Sell a Property With a Lien on It?

Yes, if you can get through the entire process without the coming up. And that's unlikely.

How Long Does It Take To Get a Lien Release From the IRS?

The IRS will issue a lien release 30 days after the debt's paid in full.

Is There a Statute of Limitations on Tax Liens?

stays in place for 10 years before the federal tax lien statute of limitations kicks in. The IRS must then cease its collection efforts and remove your debt from its books.

For tax debt, this is 10 years from the date of assessment based on your IRS tax bill or the Notice of Deficiency. The Notice of Deficiency is the IRS's legal determination of your tax debt. An official claim that you owe income tax, interest, and any additional penalties.

Remove a Federal Tax Lien With DoNotPay

DoNotPay takes relevant information about your tax lien and generates a letter to the IRS. We request a renegotiation of the terms so that the lien can be removed and you can go forward with your plans.

Here's the simple 1-2-3 process.

Search for remove my lien on DoNotPay.
Start our Remove My Lien product.
Answer some questions about your specific lien and let us help you craft a letter to your creditor to resolve the issue.

DoNotPay Works For Everyone With a Click of a Button

DoNotPay is the entity for resolving a broad range of issues regarding liens. Thousands upon thousands have turned to us to solve their problems, including hospitals, tenants, companies, nonprofits, and more. We always use local, state, or federal guidelines to ensure you're on point.