More on Notice of Federal Tax Lien

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Darrin Mish: Federal tax liens. If you have one, you probably know what they are, but I wanted to go ahead and make this short clip to explain to those of you who don’t know what a federal tax lien is, to explain some of the intricacies of what a Notice of Federal Tax Lien means to you.

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The Notice of Federal Tax Lien is notice to the world that you owe the tax; that you owe tax to the IRS that you have not paid. It basically gets recorded in your local recorder’s office. Some states call it something different; in Florida, we actually call it the Clerk’s Office.

They are usually filed where land records are filed, and that’s because the IRS is most interested in having that federal tax lien attached to your real property; your home, quite typically. What that does is that keeps you from being able to sell your home or refinance your home without dealing with that lien in one way, shape or form.

The IRS will normally file a tax lien if you owe them more than $5000. It’s not automatic; it will often be triggered by you actually calling the IRS and trying to work out some sort of installment agreement plan with them.

I have a theory that, basically, they have so many taxpayers who owe money to them that they can’t work on them. I think, that’s a well documented fact, actually, that they don’t have enough manpower to work on all of the taxpayers’ cases that owe the IRS money. Obviously, more and more people owe taxes every day, or every year, so it’s a never ending battle.

When you call the IRS, it triggers them to take a look at your case, and a human being actually decides, makes the decision, whether or not to file a tax lien. Typically, if you owe them more than $5000, in my experience, they’re going to go ahead and whack you with a federal tax lien and there’s not a lot that you can do about it.

Interestingly enough, you cannot really appeal the filing of a federal tax lien before it’s filed. They let the horse out of the barn, and then they let you go ahead and file your appeal. When you file such an appeal appealing a Notice of Federal Tax Lien you essentially only get to appeal that it was wrongfully filed; that it was not in the best interests of you or the government, or that they filed against the wrong person.

You might think that you might get some traction in the argument that it’s not in the best interests of you and/or the government, but in my experience that’s not an argument that’s going to win very often with the IRS.

It also makes a major problem on your credit report and it’s not generally a good thing to have banging around on your credit report. It makes it really hard to conduct business if you need credit at all.

But, that’s what a federal tax lien is. I wanted you to know about it and, if you give us a call or visit our website at, we might be able to prevent a federal tax lien from being filed against you.

Why don’t you go ahead and take a look at my free special report, which I offer on It might just solve your IRS problems for good.

Thanks for watching.

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