How Long Does an IRS Tax Lien Last?

A tax lien typically lasts 10 years and 30 days from the date of assessment (when the IRS officially records your tax debt), but it may be extended. Having a lien in place can impact your finances, so it’s important to understand how long a lien lasts when it can be extended, how to remove it, and ways to prevent a tax lien altogether. 

Here’s a closer look at how long IRS tax liens last and the steps you can take to manage or remove them.

Statute of limitations on a federal tax lien

An IRS tax lien lasts 10 years and 30 days from the date your tax was assessed if you don’t act. Once that statute of limitations—the Collection Statute Expiration Date—expires, the Notice of Federal Tax Lien will automatically be withdrawn (called a self-release) from the property, and the lien’s claim on your asset ends.

But while this automatic release can occur without payment, it’s unlikely for most delinquent taxpayers. A federal tax lien can be extended if the IRS refiles it 30 or more days before it expires. When this happens, the lien will renew beyond the 10-year expiration date.

How and why does the IRS extend lien expiration dates?

A federal tax lien stays in place until the tax debt is either paid off or the time limit for collecting it runs out. There are two situations where the tax lien may be extended beyond the initial 10-year period:

• Installment agreement: Setting up an installment plan to pay off your tax debt allows the IRS to extend the collection period; they can continue to collect until 89 days after the agreement ends.
• Release of a levy: If the IRS cancels a levy they placed against your property, and you agree to a new collection deadline, the IRS has until that date to collect the debt.

A renewed tax lien gives the IRS another 10 years to collect taxes owed. There’s no limit on how many times a lien can be extended, so it may never be removed against your assets unless you satisfy the debt. 

Certain events can extend the IRS’s ability to collect on a lien. For instance, declaring bankruptcy pauses collections until the case is resolved, adding that time to the lien’s duration. Applying for an Offer in Compromise (OIC) also halts the clock while the IRS reviews your application.

Can I remove an IRS tax lien sooner?

You can remove an IRS tax lien from your property before those 10 years have passed. It’s a good idea to do so—removing a lien ensures it doesn’t become a levy, which allows the government to seize your property. To remove the lien before reaching the 10-year mark, you can:

1. Pay your tax bill: The simplest and fastest way to remove a lien is to pay the past due amount. Once your tax debt is satisfied in full, the lien will be automatically released within 30 days.

2. Request a withdrawal: If you have entered into an installment plan, owe $25,000 or less, or have made a number of consecutive on-time payments, you can apply to have the lien withdrawn. Your tax debt remains unchanged but the public record of the lien will be removed.

3. Request a discharge: A lien discharge is when the IRS removes its claim from a specific property so it can be sold or refinanced. The property must meet certain criteria to qualify, such as selling it to satisfy the tax debt, substituting it with another asset used as collateral, or having little value compared to the amount owed.

4. Request subordination of lien: A subordination doesn’t remove the lien, but it gives other creditors permission to use your property as collateral; this allows you to get credit or loans that can help repay your tax debt. 

5. Set up a payment plan: If you can’t pay your full tax debt all at once, you can apply online for a payment plan. There are two types of repayment plans:

• Short-term plans are available for 180 days or less and are intended for taxpayers with less than $100,000 in combined delinquent taxes, fees, and interest. 
• Long-term plans offer a much longer installment agreement but are only available to taxpayers who owe $50,000 or less combined.

Setting up a payment plan doesn’t automatically remove your lien, but you can ask for a withdrawal after showing commitment to paying it off.

6. Make an OIC: An OIC is an offer to settle your debt with the IRS for less than you initially owed. This is typically used when you’re unable to pay your full tax liability or paying would cause significant financial hardship.

Here’s a chart to help you compare the different options:

Option	Best for	Required forms
Pay in full	Those who can pay the full amount and want the lien removed the quickest (within 30 days)	No form required
Request a withdrawal	Those who can’t pay in full but are on an installment plan, owe <$25k, or make on-time payments.	Form 12277
Request a discharge	Removing a lien on one property while keeping another to satisfy debt.	Form 14135
Request subordination	Best for those needing to get a loan or refinance but still owe taxes.	Form 14134
Set up a payment plan	Best for spreading payments over time while still potentially removing the lien.	Apply online or by mail
OIC	Taxpayers who can’t afford to pay in full and face financial hardship.	OIC forms, $205 fee (waived for low-income applicants)

How do tax liens affect your credit score and financial life? 

IRS tax liens don’t appear on your credit report, so they don’t affect your credit score directly. However, a tax lien can still impact your finances, especially if you want to take out new lines of credit. When lenders learn about your tax lien, which is a matter of public record, they view that as a red flag.

To a lender, loaning to someone with a tax lien is high risk because it decreases the odds of collecting the debt if you default. The IRS has a prior claim to your assets, so it gets paid before any other creditors. Lenders may deny your application or offer less favorable terms like higher interest rates to offset the increased risk.

If you fail to pay your tax debt, the IRS can escalate your tax lien to a tax levy. A levy allows the government to confiscate your assets to satisfy the debt you owe. This could include freezing bank accounts, garnishing wages, and seizing real estate, which will cause you considerable financial distress.

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What happens when a federal tax lien is removed?

If you pay your delinquent taxes in full or the filing expires, the lien will automatically be released within 30 days. Releasing the lien means the IRS has no legal claim to your assets and they can no longer try to collect the debt. The lien will be removed from public record, but it remains part of your financial history. 

You can have the lien removed from your financial records altogether by requesting to have it withdrawn. A withdrawal removes public notice of the lien entirely as if it never existed. Having the lien withdrawn makes it easier to qualify for loans and credit since the red flag indicating you’re a financial risk has been removed.

How to prevent federal tax liens in the future 

Tax liens can be scary, but the good news is they’re entirely preventable. Avoiding tax liens starts with completing your tax returns accurately and filing them on time. Accuracy is key because it ensures you pay the correct amount of taxes. If the information you provide is incorrect, you could be penalized for underpaying. 

Be sure to file your taxes by the deadline, even if you can’t pay the full amount owed; late filings trigger penalties and increase the likelihood of a tax lien being filed. Whenever possible, pay your taxes promptly and in full to avoid building up an unpaid balance. 

If you’re having trouble paying your entire tax debt, be sure to talk to the IRS—ignoring it won’t help. You can set up a payment plan by calling 1-800-829-1040 (for individuals) or 1-800-829-4933 (for businesses). Working with the IRS shows your intent to repay and can prevent a tax lien from being filed.