What is IRS Letter 1862 and what does a federal tax lien mean for me?

IRS Letter 1862 is the Notice of Federal Tax Lien (NFTL) filing notification. It means the IRS has filed a public record against your property, which attaches to all your assets (real estate, bank accounts, receivables), appears on your credit report, blocks the sale or refinance of property, and survives bankruptcy. The lien secures the government's interest in your assets until the tax debt is satisfied or the statute of limitations expires.

Can an IRS tax lien be removed or withdrawn?

Yes, there are several ways to remove a federal tax lien. Release: the lien is removed when the tax debt is fully paid or the Collection Statute Expiration Date (CSED) passes. Withdrawal via Form 12277: the IRS agrees to remove the public NFTL even if the debt is not fully paid, available for payment plans under $25,000 or streamlined agreements. Discharge via Form 14135: removes the lien from a specific property, such as when selling a home for less than the tax debt. You also have CDP appeal rights within 30 days of the lien filing via Form 12153.

What should I do immediately after receiving Letter 1862?

First, do not ignore it — the 30-day window for a Collection Due Process (CDP) appeal starts from the lien filing date. File Form 12153 to request a CDP hearing with the IRS Independent Office of Appeals to challenge the lien. Evaluate your options for lien relief: pay in full for a release, set up a direct debit installment agreement under $25,000 for withdrawal, or request a discharge if you need to sell or refinance specific property. Contact a tax professional who can guide you through the lien removal process and negotiate with the IRS on your behalf.

Federal Tax Lien — NFTL Filed

IRS Letter 1862: Tax Lien Filed Against You

The IRS has filed a Notice of Federal Tax Lien (NFTL) against your property. This is public record — it appears on your credit report, affects your ability to sell or refinance property, and attaches to everything you own. You have CDP appeal rights and options to get the lien removed.

Get Lien Help Call 310-597-2254

Lien Removal Help

Confidential and no obligation.

Get Your Free Tax Relief Review

A specialist will review your case and outline your options — completely free.

100% Confidential|CPA-Reviewed|Updated 2026

What Letter 1862 Means

A Notice of Federal Tax Lien (NFTL) is a public document filed with the county recorder or Secretary of State notifying creditors that the IRS has a claim against your property. The lien arises automatically when the IRS assesses the tax, demands payment, and you fail to pay — the NFTL is the public filing that perfects the IRS's security interest. Letter 1862 is the IRS's notification to you that the NFTL has been filed.

Public Record

The NFTL appears in county records and on your credit report — lenders, employers, and landlords can see it.

Attaches to All Property

The lien attaches to all your current and future property — real estate, vehicles, bank accounts, accounts receivable.

Blocks Sale/Refinance

You cannot sell or refinance property with a federal tax lien without either satisfying the lien or obtaining a discharge.

Survives Bankruptcy

A federal tax lien generally survives bankruptcy discharge — the lien remains on your property even if the underlying debt is discharged.

How to Remove a Federal Tax Lien

Lien Release (Full Payment)

Pay the balance in full — the IRS must release the lien within 30 days. This is the cleanest removal but requires full payment.

Lien Withdrawal

The IRS removes the NFTL as if it was never filed. Available through: installment agreement with direct debit (balances under $25,000), Offer in Compromise acceptance, or administrative error. Form 12277.

Lien Discharge

Removes the lien from a specific piece of property — e.g., you want to sell your house but the lien encumbers title. Apply for a Certificate of Discharge (Form 14135).

Lien Subordination

Puts another creditor ahead of the IRS — useful if you need a mortgage or business loan. The IRS keeps its lien but lets the bank go first. Form 14134.

CDP Appeal

File Form 12153 within 30 days of Letter 1862 to request a Collection Due Process hearing — challenge the lien's validity and propose alternatives.

A Tax Lien Is Public and Damaging — Get It Removed

Call 310-597-2254