For federal tax purposes, a lien arises on all of the taxpayer’s real and personal property, and rights to such property, after the assessment has been made and proper notice has been mailed.  The federal tax assessment lien is sometimes referred to as the “secret lien” because only the IRS and the taxpayer are aware of its existence, but the assessment lien is nevertheless effective against all others with the exception of those specifically identified in the Internal Revenue Code.

The assessment lien should not be confused with a filing of a Notice of Federal Tax Lien, which is nothing more than a public proclamation of the existence of the assessment lien.  However, it is important to note that there are many ways to deal with a Notice of Federal Tax Lien.

First, a taxpayer has a right to appeal the filing of a Notice of Federal Tax Lien within certain time constraints.  Second, even if the Notice of Lien is not appealed timely a solution to the Federal Tax Lien may be in the form of a Request for Discharge of Lien, Request for Subordination of the Lien, Request for Withdrawal of the Lien or Request for Release of the Lien.  There are many potential solutions to deal with and legally transfer property secured by a Federal Tax Lien.  The key to finding the right solution depends on the particular circumstances of your case.