What is Federal Tax Lien?

An unpaid tax liability owed to the Federal Government may be filed as a lien on the real property owned by the delinquent taxpayer. The effect of the Federal Tax Lien is to encumber the property and make it impossible to sell the real estate without first taking care of the lien from the sale proceeds. Unlike a judgment lien, a Federal Tax Lien can be imposed prior to a court ruling. Federal Tax Liens are a very powerful IRS enforcement tool.