Notice of Federal Tax Lien (NFTL)

The public filing the IRS makes to notify creditors of its legal claim against a taxpayer's property over an unpaid tax debt — a claim, not a seizure, and legally distinct from a levy.

A Notice of Federal Tax Lien is the IRS’s public filing announcing its legal claim against a taxpayer’s property over an unpaid tax debt — it happens after the IRS assesses a liability, sends a Notice and Demand for Payment, and the balance goes unpaid. A lien is not a levy: it secures the government’s claim rather than seizing property, though it attaches to real estate, vehicles, and other assets, including ones acquired later.

What’s the difference between a tax lien and a tax levy?

A lien secures the government’s legal claim against a taxpayer’s property; a levy is the actual seizure of that property or income. Per the IRS’s own explanation, “a lien is not a levy,” and confusing the two is one of the most common misunderstandings about IRS collection. A Notice of Federal Tax Lien can exist with no levy ever happening, and see IRS Notice Escalation for how the separate levy notice sequence (CP14 through LT11/Letter 1058) works.

When does the IRS file a Notice of Federal Tax Lien?

The IRS files a Notice of Federal Tax Lien after three things happen, in order: it assesses the tax liability, sends a Notice and Demand for Payment, and the taxpayer fails to pay in full and on time. The filing itself is what makes the lien public and establishes its priority against most other creditors under 26 U.S.C. § 6323 — the underlying lien technically arises automatically at assessment under 26 U.S.C. § 6321, but filing the notice is what gives it that priority and public visibility.

Does a tax lien affect my credit score?

Not directly through a credit report — all three major credit bureaus removed tax liens from consumer credit reports starting in 2018. It’s still a public record, though, and can surface during a mortgage application, title search, or property sale, so “off my credit report” doesn’t mean “invisible” for every purpose.

How do I get a lien released, withdrawn, or discharged?

Pay the tax debt in full. The IRS releases the lien within 30 days of full payment.
Apply for lien withdrawal under the Fresh Start program if you qualify — withdrawal removes the public notice even though the underlying debt may still be owed.
Request discharge of the lien from a specific property (for example, to complete a sale) without necessarily resolving the whole balance.
Request subordination to let another creditor’s claim move ahead of the IRS’s, which can help refinancing.

Frequently asked

Is a tax lien the same thing as a levy?

No. A lien is the government's legal claim against a taxpayer's property, securing its interest; a levy is the actual seizure of property or income to satisfy the debt. A Notice of Federal Tax Lien can be filed without any levy happening, and a levy can happen without a lien notice being filed first.