Notice of Federal Tax Lien
And a Right to a CDP Hearing
A Notice of Federal Tax Lien (NFTL) is the IRS’s way of publicly securing its legal right to your current and future assets. It’s not just a warning; it’s a powerful enforcement tool that attaches to your property, credit, and financial future.
Once a lien is filed, it becomes part of the public record, damaging your credit and making it nearly impossible to sell or refinance property until the tax debt is resolved.
This notice also informs you of your right to a Collection Due Process Hearing. This is a very important notice providing a very limited time to file a timely appeal. A phone call to the IRS does NOT extend the deadline to timely appeal. By timely appealing this notice, the IRS is prohibited from pursuing collection action against you for the balance due referenced in the notice AND you are provided rights to Tax Court review if the IRS fails to follow the law, a very powerful weapon to utilize during negotiations with the IRS.
It is highly recommended that you contact a tax lawyer to discuss your appeal rights immediately upon receiving this notice.
▸ Why Did I Receive a Notice of Federal Tax Lien?
You received this notice because:
You owe $10,000 or more in unpaid federal taxes (sometimes less)
The IRS sent you previous bills (CP14, CP501, etc.) and hasn’t received payment
You did not request or qualify for a Collection Due Process (CDP) hearing in time
The IRS is now formally securing its interest in your property
▸ What’s in the Notice?
The Notice of Federal Tax Lien typically includes:
Your name, address, and tax ID
The amount of unpaid taxes the lien covers
The tax periods involved
The IRS’s legal claim to your real estate, personal property, and financial assets
This is a public document filed with your local county or secretary of state. It can impact your credit score and appear on background checks.
▸ What Should You Do?
Act immediately. A lien is a legal claim that gets worse over time.
Contact a tax attorney right away to explore release or withdrawal options.
Determine if you qualify for:
Lien withdrawal (for example, after full payment or installment plan)
Lien discharge for certain property sales
Lien subordination to refinance or sell assets
Consider requesting a Collection Due Process hearing, if still available.
▸ When to Call a Tax Attorney
A Federal Tax Lien is not just a notice. It's the IRS asserting its right to your assets. A tax attorney can help you:
Prevent the IRS from escalating to levy or seizure
Challenge the validity of the lien if the tax is incorrect or already paid
Request lien withdrawal, subordination, or discharge
Protect your business and personal property from future enforcement
If you've received a lien notice, it's critical to get legal help before the IRS takes the next step.
▸ Don’t Let a Lien Damage Your Finances
A federal tax lien can block you from selling your home, getting credit, or keeping your business afloat.
Call (903) 595-1000 or fill out this quick form to schedule a consultation.
