When Will the IRS Silent Lien Apply to Federal Tax Debts?

 Posted on June 27, 2025 in Taxation Law

When the IRS determines that a taxpayer has a tax debt, it may use multiple different methods to collect the amount owed. The claim that the IRS has against a taxpayer’s assets is known as a silent lien, and it could lead to collection actions taken by the IRS to satisfy the debt. For taxpayers with tax debts, it is important to understand when the IRS silent lien will apply, when a tax lien may become public, and what effects liens will have.

An attorney with experience addressing issues related to tax law can provide guidance on how to address silent liens and other issues related to tax debts. With legal representation, taxpayers can determine what steps they can take to reduce the amount they may be required to pay or have liens lifted before they can affect their credit or cause other financial issues.

Understanding the IRS Silent Lien

When a taxpayer does not pay tax debts as required, the IRS will have a claim to their assets. This claim is known as the IRS silent lien, and it may also be referred to as an automatic lien or statutory lien. The silent lien is not public, and it goes into effect automatically under the law (Internal Revenue Code § 6321).

The IRS silent lien will apply in situations where the IRS determines that a taxpayer has a tax debt and issues a Notice and Demand for Payment. After receiving this notice, a taxpayer will typically have 10 days to pay the amount owed or to make other arrangements with the IRS. If payments are not made as required, the silent lien will go into effect, and it will be retroactive to the date that the IRS assessed the amount of taxes due.

While the IRS silent lien may not have immediate effects (because it will not be visible to the public), it does give the IRS the right to take action to collect debts without the need to seek a legal judgment against the taxpayer or notify other creditors of its collection actions. The IRS will have a claim against the taxpayer’s assets, including their financial accounts, their home or other real estate property, their vehicles, or anything else they own. 

When the IRS begins taking steps to collect the amount owed, the lien will become public, and others may learn about it when reviewing a taxpayer’s credit history. This could affect a taxpayer’s ability to obtain loans, make major purchases, or complete business deals. The IRS may choose to use levies to seize certain assets, such as the funds in a bank account, or to garnish the taxpayer’s wages. The IRS may also file a Notice of Federal Tax Lien, providing public notice of the IRS’ encumbrance on all of the taxpayer’s real estate or other property that must be satisfied before the property can be sold or transferred.

Removing a Silent Lien

The IRS silent lien will only be removed once a tax debt has been paid. A taxpayer may pay the amount owed in full, and the lien will be released within 30 days after the payment has been made. A taxpayer may also request an offer in compromise that, if accepted by the IRS, will allow them to pay less than the full amount they owe while still removing the lien when the offer payment(s) have been made. Installment agreements may also be made that will allow the debt to be paid off gradually, and the lien will be released after the final payment is made.

Contact Our San Jose, CA Tax Attorney

When you have been informed that you owe taxes to the IRS, resolving these debts can help you avoid a lien. Whether you are subject to the IRS silent lien, have received notice of a federal tax lien, or are facing a levy by the IRS, you can address these issues with the help of an attorney. At John D. Teter Law Offices, our San Jose tax lawyer can provide guidance on the best ways to resolve tax debts, including disputing the debt, requesting an installment payment plan, requesting an offer in compromise, or taking other steps that will protect your credit and your finances. Contact our office at 408-866-1810 to arrange a consultation and get more information about how we can assist with these issues.