A claim by the federal government against property for unpaid tax debts.
Definition
A federal tax lien is a legal claim imposed by the Internal Revenue Service (IRS) on a taxpayer's property, including real estate, to secure payment of outstanding federal tax debts. It attaches to all property and rights to property owned by the taxpayer at the time the lien arises and continues until the debt is paid or otherwise resolved.
Why It Matters
Federal tax liens are essential to identify during public records and property ownership research because they can affect the clear title of real estate and signal potential financial or legal issues involving the property owner, impacting transactions and investigative conclusions.