A Federal Tax Lien is the federal government’s legal claim against your property when you fail to pay a tax debt. Federal Tax Liens are public records that indicate you owe the IRS. Federal Tax Liens may have a negative impact on your credit.
A Release of lien occurs after the underlying tax liability has been satisfied in full, via a monthly payment agreement or by paying it outright in a lump sum, or via an accepted and paid Offer In Compromise. Most Liens are generally self-releasing after 10 years.
Under the Fresh Start program the IRS has established several requirements for a federal tax lien to be removed. When a taxpayer meets certain requirements and pays off their tax debt, the IRS may now withdraw a filed Notice of Federal Tax Lien.