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 filed against you 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.
If you’re selling your house with an IRS lien, you’ll need to work with the IRS to negotiate a payoff, subordination, or discharge to clear the title before closing.
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 IRS liens are more aggressive, since the IRS can seize assets and require responding to an IRS notice of intent to levy, while private creditors must go through additional court processes 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
- Consider getting an IRS lien released after settlement if you’ve paid in full or completed an Offer in Compromise
- 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
📞 Call us today at 657-218-5700 or email marc@boulangercpa.com to schedule a confidential consultation.
If you’re facing liens, levies, or garnishments, professional guidance can help you clear your record and protect your property. For deeper insights into handling liens and collections, explore more in Defend What’s Yours.
Frequently Asked Questions
What is the difference between an IRS lien and a judgment lien?
An IRS lien is filed by the federal government for unpaid taxes, while a judgment lien results from a court ruling for unpaid debts to private creditors or other entities.
Which lien takes priority?
Priority depends on filing dates. Federal tax liens often take precedence, but judgment liens filed first may sometimes hold priority in certain circumstances.
How does an IRS lien affect property?
An IRS lien attaches to all real and personal property, including future assets acquired while the lien is in place. It limits your ability to sell or refinance without addressing the debt.
How does a judgment lien affect property?
A judgment lien generally attaches to real estate in the county where it’s filed. It prevents clear transfer of title until satisfied or released.
Can both liens appear on my property at the same time?
Yes. If you owe taxes and also lose a lawsuit, both an IRS lien and a judgment lien may attach to your property simultaneously.
Can either lien be removed?
Yes. IRS liens are released once the tax debt is paid or settled, while judgment liens are removed once the judgment is satisfied or legally vacated.
Do these liens affect credit reports?
Neither IRS liens nor judgment liens are reported directly to credit bureaus anymore, but both remain public records and can still affect lending decisions.
Should I hire a professional to deal with liens?
Yes. Both IRS and judgment liens require legal or tax expertise to resolve effectively and protect your property rights.
📣 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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