The short answer
The debt itself is between you and the IRS. But if the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit, the IRS says. A lien is a public notice. Lenders can find it.
A lien withdrawal removes the public notice. You may ask for one after the lien is released, or on a direct debit plan if you owe $25,000 or less.
Words to know
- Federal tax lien
- The government's legal claim on your property when you don't pay a tax debt.
- Lien withdrawal
- Removal of the public lien notice. You still owe the debt. Ask with Form 12277.
- Notice of Federal Tax Lien
- A public notice the IRS files to tell creditors it has a claim on your property.