Winchester, VA: I Just Received a Notice of Federal Tax Lien. What is that? What Do I Do Now?

If you owe more than $10,000 in back taxes to the IRS, they will issue a Notice of Federal Tax Lien “NFTL”. The Notice of Federal Tax Lien alerts creditors that the IRS has an interest in the property owned or acquired by the taxpayer. The NFTL is filed with the land records where the taxpayer resides and with the Secretary of State in the taxpayer’s state of residence. Essentially, the Notice of Federal Tax Lien “perfects” the tax lien and provides priority over subsequent liens. A Notice of Federal Tax Lien is a document filed with the local recording office that identifies tax liabilities owed by the taxpayer. Each notice of lien document can reflect…(continue reading)