How the lien comes into existence
A federal tax lien generally arises automatically when an assessed tax goes unpaid after the IRS demands payment. No court judgment is needed, and the lien exists before any public notice is filed; the filing mainly affects the government's priority against other creditors. The lien generally reaches all of your property and rights to property, including assets you acquire after it arises. It continues until the debt is paid or otherwise resolved, or until the period the IRS has to collect runs out. Because the lien is tied to specific assessments, it matters which tax periods are behind it and whether those balances are correct.
Jointly owned and business property
Property you own with someone else raises harder questions. The lien generally attaches only to the debtor's interest, but that interest can include a share of a home held with a spouse, even in forms of ownership that shield property from many ordinary creditors under state law. When the debt belongs to a corporation or an LLC taxed as a separate entity, the lien usually attaches to the business's property rather than an owner's. Some business taxes, especially unpaid payroll withholding, can still become personal through a separate penalty assessed against the people responsible for paying them. Sorting out whose debt it is often changes which assets are actually exposed.
Selling, refinancing, or borrowing with a lien in place
A lien does not usually stop a sale on its own, but the title company will want it addressed before closing. The IRS has procedures to discharge a specific property from the lien, often in exchange for the sale proceeds, and to subordinate its position so a lender can refinance ahead of it. Each requires an application supported by valuations and a draft closing statement, and processing takes time, so the request should start well before the closing date. Our early review covers which taxes and periods are behind the lien, whether the balance itself is right, and whether the property you care about can be freed while the larger debt is resolved.
