The blanket IRS tax lien automatically applies to all of your property whenever you owe taxes to the IRS. This lien does not result in immediate collection of your tax debt like a bank account seizure or wage garnishment, but it does encumber your property, making it difficult to sell or refinance once the IRS files its Notice of Federal Tax Lien. If you need to sell your property or get rid of the lien, you need to request a discharge from the IRS.
How to Get a Tax Lien Discharged
Once the IRS records a lien, generally by filing it against your real property at the county recorder’s office, any subsequent purchaser takes the property subject to the lien. Since a buyer is not going to want to be responsible for your delinquent tax debt, you will likely need to negotiate a lien discharge before you can sell your home.