First, if you owe back taxes, you will receive a series of letters from the IRS reminding you to pay. If those payment notices go unanswered for long enough, the IRS may ramp up their efforts to get its money. That’s when it typically files the dreaded tax lien explained above. Keep in mind, however, that the IRS doesn’t always send multiple notices. It may simply make an assessment.
To try and avoid an IRS tax lien, you may enter into an installment agreement with the IRS. Another option is the IRS’s Offers in Compromise (OIC) program. Qualifying for the OIC program involves an entirely different set of factors.