Judgements: Federal Tax Liens

It is the opinion of the Internal Revenue Service – regarding federal tax liens – that separate but identical liens filed against a husband and wife individually will attach as a lien to jointly-held property including property held as an estate by the entirety. Therefore, such liens must be made an exception to title unless satisfied and released, substituted against other property, or subordinated as to the lien of the current/new mortgage. In the latter case, the lien would still be reflected as an exception to title on the owner’s and loan policies; however, it would be reflected as a subordinated interest on Schedule B, Part II of such loan policy. 


Federal tax liens will attach to all real property owned by the debtor/taxpayer including homestead property. Effective November 5, 1990, the validity of Federal Tax Liens has been extended from 6 years, 30 days to 10 years and 30 days after the date of the assessment (column (d) in the notice of lien) of the tax unless refiled. A certified judgment on the other hand, in favor of the U.S. Government, will remain in force 20 years from entry, and may be extended for an additional 20 years.


See also:


Federal Tax Liens