How does a tax lien affect my credit?

A federal tax lien can severely damage your credit score and remains on your credit report until it's released or withdrawn. It makes it difficult to get mortgages, loans, or credit cards.

Can a tax lien be removed?

Yes. Tax liens can be released (debt paid or expired), discharged (removed from specific property), subordinated (another creditor gets priority), or withdrawn (public notice removed). Each option serves a different purpose.

Will a federal tax lien show up on my credit report?

The major credit bureaus removed tax liens from consumer credit reports in 2018, but lenders, title companies, and underwriters routinely pull public records and will see the NFTL. The practical impact on mortgages, refinances, and business credit is unchanged.

How is a tax lien different from a tax levy?

A lien is a legal claim against your property securing the IRS debt. A levy is the actual seizure of property to satisfy that debt. A lien attaches; a levy takes. We address both, and the strategy differs.

Can I sell my house with a federal tax lien attached?

Yes — through a lien discharge under IRC § 6325(b). The IRS releases its claim against the specific property so the sale can close; the lien remains attached to other assets unless separately resolved. We've completed time-sensitive discharges in under two weeks.

How does a tax lien affect my credit?

A federal tax lien can severely damage your credit score and remains on your credit report until it's released or withdrawn. It makes it difficult to get mortgages, loans, or credit cards.

Can a tax lien be removed?

Yes. Tax liens can be released (debt paid or expired), discharged (removed from specific property), subordinated (another creditor gets priority), or withdrawn (public notice removed). Each option serves a different purpose.

Will a federal tax lien show up on my credit report?

The major credit bureaus removed tax liens from consumer credit reports in 2018, but lenders, title companies, and underwriters routinely pull public records and will see the NFTL. The practical impact on mortgages, refinances, and business credit is unchanged.

How is a tax lien different from a tax levy?

A lien is a legal claim against your property securing the IRS debt. A levy is the actual seizure of property to satisfy that debt. A lien attaches; a levy takes. We address both, and the strategy differs.

Can I sell my house with a federal tax lien attached?

Yes — through a lien discharge under IRC § 6325(b). The IRS releases its claim against the specific property so the sale can close; the lien remains attached to other assets unless separately resolved. We've completed time-sensitive discharges in under two weeks.

You Are Not The First. You Will Not Be The Last.

Tax Liens

Remove, release, or subordinate federal tax liens damaging your credit and property.

Filed AfterUnpaid balance + demand

Credit ImpactSevere — reported to agencies

OptionsRelease, Discharge, Subordination, Withdrawal

Fresh Start Threshold$25,000 for withdrawal

Free · Confidential · Today

Talk To A Real Tax Attorney

One honest conversation. You'll hang up knowing exactly what the IRS can — and can't — do to you, and how we'll stop them.

Call (877) 829-5267

Privileged Mon–Fri 8–5

Legally reviewed byGregory McCauley Jr., Esq.

Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court

Last reviewedDecember 22, 2025

What This Actually Is — And How We End It

The Truth About Tax Liens — And What To Do Right Now

A federal tax lien is the government's legal claim against your property when you fail to pay a tax debt. It attaches to everything you own — your home, your car, your bank accounts, your business assets — and destroys your credit score.

McCauley Law Offices can help you get tax liens released, discharged, subordinated, or withdrawn. Each option serves a different purpose, and choosing the right strategy requires experienced counsel.

Under the IRS Fresh Start Initiative, if you owe $25,000 or less and set up a direct-debit installment agreement, you can request a lien withdrawal — meaning the IRS removes the public record as if the lien was never filed. This is the fastest path to restoring your credit.

How Tax Liens Work

A federal tax lien arises automatically when you fail to pay a tax balance after the IRS sends a notice and demand for payment. However, the IRS can also file a public Notice of Federal Tax Lien (NFTL) — this is what appears on your credit report and in public records.

The lien attaches to all property and rights to property, including:

Real estate — your home, investment properties, land
Personal property — vehicles, jewelry, equipment
Financial assets — bank accounts, investment accounts, retirement funds
Business assets — accounts receivable, inventory, equipment
Future property — anything you acquire while the lien is active

Four Ways to Deal With a Tax Lien

1. Lien Release

The IRS must release a lien within 30 days of the tax being paid in full, the collection statute expiring, or a bond being accepted. We ensure proper and timely release.

2. Lien Discharge

Removes the lien from a specific piece of property — critical when you need to sell or refinance. We prepare Form 14135 and negotiate with the IRS to allow the transaction.

3. Lien Subordination

Allows another creditor to move ahead of the IRS in priority — for example, letting a mortgage lender take first position so you can refinance. The IRS agrees because the refinance often results in payment toward the tax debt.

4. Lien Withdrawal

The most beneficial option — the IRS removes the public notice as if it was never filed. Available under Fresh Start if you owe $25,000 or less with a direct-debit installment agreement.

A tax lien can remain on your credit report even after the underlying debt is paid. You must specifically request a withdrawal or obtain a Certificate of Release and provide it to the credit bureaus. We handle this process to ensure your credit is properly restored.

You Are Not Alone

People Just Like You Have Sat In This Exact Chair

They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.

Homeowner Needing to Refinance

A King of Prussia homeowner had a $85,000 tax lien preventing refinancing. We negotiated lien subordination, allowing the refinance to proceed while setting up a payment plan for the underlying debt.

Refinance Saved by Subordination

A Newtown Square client needed to refinance to lower her rate, but a $54,000 lien blocked the new mortgage's priority position. We obtained a Form 14134 subordination, the refinance funded, and part of the cash-out was applied to the IRS balance.

Withdrawal After Fresh Start Direct Debit

A Media business owner who owed $19,000 entered a direct-debit installment agreement under Fresh Start. We filed Form 12277 and obtained a lien withdrawal — clearing the public record and restoring access to business credit lines.

IRS Notices

That Letter In Your Hand? Here's What It Really Means.

The IRS writes notices in code on purpose. If any of these landed in your mailbox, tax liens is exactly how we fight back — and the clock is already ticking.

IRS CP504— Intent to Levy Notice

Urgent — Don't Delay

This is a final notice before the IRS seizes your assets. They intend to levy (take) your state tax refund and may seize other assets.

Deadline: 30 days

IRS LT11 / Letter 1058— Final Notice of Intent to Levy

Critical — Act Now

This is the absolute final warning. The IRS will begin seizing your wages, bank accounts, and property within 30 days.

Deadline: 30 days

Look up your specific IRS notice Browse the full IRS notice library

Every Day You Wait, The IRS Wins A Little More.

Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.

Call (877) 829-5267

From Panic To Peace Of Mind

Exactly How We Take This Off Your Shoulders

The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.

1
Review your lien situation
We obtain your IRS transcripts and identify all active liens, the amounts owed, and any affected property.
2
Evaluate removal options
We determine whether withdrawal, discharge, subordination, or release is the best strategy for your situation.
3
File the appropriate requests
We prepare and submit Form 12277 (withdrawal), Form 14135 (discharge), or other required applications.
4
Negotiate with the IRS
We work directly with IRS collection to expedite processing and resolve any issues with your request.
5
Confirm lien removal & credit repair
Once the lien is resolved, we ensure proper documentation so you can begin restoring your credit.

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Real results from real clients

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

Robert M.

"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."

Sandra L.

"They stopped a wage garnishment within 48 hours and ultimately settled my case for pennies on the dollar. I can't recommend them enough."

Michael T.

"I hadn't filed taxes in 5 years and was terrified. McCauley Law handled everything — filed all my returns, negotiated with the IRS, and got my penalties reduced by 80%."

Jennifer K.

"As a small business owner, I was facing $250,000 in payroll tax debt. Their team negotiated an Offer in Compromise that saved my business."

David R.

"My ex-husband's tax fraud left me liable for $135,000. McCauley Law got full innocent spouse relief — I owe nothing. They gave me my life back."

Maria G.

"Facing criminal tax charges was the worst experience of my life. Gregory McCauley's defense was brilliant — charges reduced, no prison time. Forever grateful."

Thomas W.

"The IRS had a lien on my home and was threatening seizure. McCauley Law negotiated a manageable payment plan and got the lien subordinated so I could refinance."

Patricia H.

"Professional, knowledgeable, and responsive. They explained every step of the process and kept me informed throughout. Resolved my $92,000 tax debt for $8,500."

James C.