IRS Lien vs Judgment Lien – What’s the Difference?
IRS and Judgment Liens Are Both Serious—But Triggered Differently
If you've been notified of a lien, it's important to understand what kind of lien it is. The most common are IRS tax liens and judgment liens, and they come from entirely different processes.
In this post, we compare the two, explain how they affect your property and finances, and outline your options for resolution.
IRS Tax Lien – No Court Required
An IRS lien arises when:
- You owe federal taxes
- The IRS sends a notice and demand for payment
- You don’t pay
The IRS then files a Notice of Federal Tax Lien (NFTL) to make the lien enforceable against third parties. No lawsuit or court order is required.
Related: IRS Lien Filed Against You? What It Means and What to Do Next
Judgment Lien – Civil Court Required
A judgment lien is the result of:
- A private creditor suing you in civil court
- Winning a monetary judgment
- Recording that judgment with your local recorder’s office
These liens are used by creditors like banks, credit card companies, or landlords.
Comparison Table
| Feature | IRS Tax Lien | Judgement Lien |
|---|---|---|
| Trigger | IRS assessment | Court judgment |
| Court required? | No | Yes |
| Filed by | IRS | Private creditor |
| Appears in public record? | Yes | Yes |
| Appears on credit report? | Not anymore | Often, yes |
| Affects refinancing or sale? | Yes | Yes |
Note: IRS liens no longer appear on credit reports, but judgment liens may still affect your score and loan eligibility.
What They Mean for You
Both liens:
- Are public record
- Can block refinancing or property sales
- Attach to real estate and personal assets
But the IRS can levy bank accounts or wages without going to court. Private creditors need an additional court process to enforce their lien.
Related: IRS Wage Garnishment – What It Is and How to Stop It
What to Do If You Have a Tax Lien
- Verify balance using Tax Transcripts – Why They Matter
- Request a lien release after payment
- Explore a Lien Withdrawal
- Enter into a payment plan or Offer in Compromise
What to Do If You Have a Judgment Lien
- Consult an attorney for civil lien matters
- Verify lien recording accuracy
- Attempt negotiation or settlement
- File for satisfaction of judgment after payment
FAQ: IRS vs. Judgment Liens
Q: Can both liens exist at once?
A: Yes—and they compete based on
filing date and lien priority rules.
Q: Will paying remove the lien automatically?
A: Not always. IRS liens require a
release, and judgment liens require
court-filed satisfaction.
Q: Can I sell my home with one of these liens?
A: Not without addressing the lien—both will show up in a title search and must be resolved.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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