Also known as: tax liens
Written by attorneys · grounded in primary & secondary sources — see below
A statutory lien imposed on property for unpaid taxes. Priority and enforcement are governed by statute. The lien affects marketability and priority of title to the encumbered property.
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Tiffany Torres owes federal taxes. The IRS records a tax lien against her. Torres later purchases a parcel from a seller. The lien attaches automatically upon acquisition. A subsequent buyer refuses to close because the lien clouds title and reduces marketability.
Tobias Thomas and his spouse hold real property as tenants by the entirety under state law. The IRS assesses unpaid taxes against Thomas alone and files a notice of federal tax lien. The lien attaches to Thomas's rights in the property despite the state-law form of ownership. The government may enforce the lien against the entire parcel.
A tax lien's priority is determined by statute rather than common-law recording rules. Federal tax liens often enjoy superpriority in specified contexts and may override state-law doctrines such as estoppel by deed.
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Yes. Once a tax lien arises, it reaches all property the taxpayer later acquires, including interests obtained after the lien is recorded.
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No. Federal tax liens attach to any property or rights to property the taxpayer holds under state law, even when state law would otherwise shield the asset, such as entireties property.
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…with whom The Chief Justice joins, dissenting. I respectfully dissent. The Court’s decision expands the reach of federal tax liens beyond what the statute will bear. Under Michigan law, a tenancy by the entirety is a unique form of concurrent ownership in which neither spouse has an individual interest that can be…