The federal tax lien, which is sometimes called the "statutory lien," is the basis for the government’s claim against the taxpayer’s property, including current and future rights to property.

While the federal tax lien is the bedrock of all collection actions and protects the government’s interest in litigation, a Notice of Federal Tax Lien (NFTL) is needed for the federal tax lien to compete with certain classes of creditors. The NFTL, as identified in IRC 6323, is a public notification of the government’s claim against the taxpayer’s property for a tax debt.

In accordance with IRC 6323(g), the NFTL must be refiled at certain intervals to maintain the effectiveness of the NFTL and the priority of the federal tax lien. Timely refiling also prevents the inadvertent self-release of the federal tax lien.

The authority for federal tax liens and NFTLs are found in the following code and regulation sections.

The following Policy Statements and Delegation Orders regulate NFTL filing.

The Director, Collection Policy is responsible for overseeing policy and procedures regarding NFTLs.

Employees authorized to make determinations regarding specific lien actions are responsible for ensuring procedures are properly followed.

Managers are responsible for ensuring employees are duly delegated to perform lien actions and that their actions are in accordance with policy and procedures.

The Centralized Lien Operation (CLO) has primary responsibility for inputting information to, and processing lien documents generated by, the Automated Lien System (ALS).

Other roles and responsibilities related to the lien program can be found in IRM 5.12.1.5, IRS Organizations Working Lien Issues and its subsections.

IRM 5.12.1.6, Locations of IRM 5.12 Content, identifies IRM locations associated with NFTL determinations, filing, refiling, maintenance, and release. It is within the specific IRM sections that lien program responsibilities, instructions, and procedures are identified.

NFTL activity is reviewed and documented in numerous ways, including those shown on the following table.

The Automated Lien System (ALS) electronically stores data regarding NFTL activity.

Management ensures compliance with policy and procedures through case reviews and operational reviews.

IRM 1.2.2.6.4, Delegation Order 5-4 (Rev. 3), Federal Tax Lien Certificates, stipulates the IRS positions authorized for lien activities.

NFTLs are created and maintained through ALS. The Centralized Lien Operation (CLO) is primarily responsible for updating and maintaining ALS data.

Access to systems used in the NFTL process is controlled following standard access guidelines through the Business Entitlement Access Request System (BEARS, formerly Online 5081).

There are numerous reports to monitor NFTL filings and ALS activity. (See ALS User Guide, Chapter 15, Logs and Reports, for a complete listing of ALS reports.)

Closed records associated with NFTLs are retained in accordance with Document 12990, Records Control Schedules, Tax Administration - Collection (RCS 28). and IRS Electronic Tax Administration (RCS 32)

The table below lists key terms related to the lien program.

The table below lists common acronyms used in the lien program and throughout this IRM.

See IRM 5.12.1-2 Exhibit 2, Glossary of Common Acronyms in IRM 5.12, for a listing of other common terms and acronyms used in the federal tax lien program.

Other terms and definitions specific to the refile process are detailed throughout this IRM section.

The form used to provide notice of the lien is Form 668(Y)(c), Notice of Federal Tax Lien. The form, when properly annotated, is also used for NFTL variations, including amended and special condition NFTLs.

The form used to refile the NFTL is Form 668-F, Notice of Federal Tax Lien Refile.

IRM 5.17.2, Legal Reference Guide for Revenue Officers, Federal Tax Liens, provides additional details about lien law such as the types of property subject to the federal tax lien and the priority of the federal tax lien versus other competing encumbrances.

IRM 5.12.1, Lien Program Overview, provides additional information, websites, and job aids related to the lien program.

Links to tools and references to assist IRS employees with lien processes may also be found on the SB/SE Collection website. Similar information for taxpayers may be found on the Understanding a Federal Tax Lien page on IRS.gov (https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien).

Taxpayer rights with regard to IRS processes are stipulated in IRC 7803(a)(3) and on the Taxpayer Bill of Rights intranet page. Specific rights regarding lien processes are referenced throughout this IRM, as needed.

This IRM is for procedural use and does not provide detailed instruction on the use of any system. User guides, such as the Automated Lien System (ALS) User Guide, should be consulted as necessary.

The statutory lien arises with a taxpayer's failure to pay their tax liability after demand. If no NFTL is filed, the duration of the statutory lien is dependent solely on whether the statute to collect the tax liability remains open.

Once a NFTL is filed, the statutory lien has a certain dependence on the NFTL. While it remains true that the statutory lien is always extinguished when the liability is satisfied or the period to collect expires, the statutory lien can also be released through the self-releasing language on the NFTL. The self-releasing language can be triggered even if the collection period has been extended or suspended.

The reason for the self-releasing statement is to ensure that the law is met which requires a notification to creditors that the NFTL is no longer valid because the statutory lien has been released. IRC 6325 requires the IRS to issue a release of lien not later than 30 days after the day on which the liability for the amount assessed has become legally unenforceable (or when such liability has been fully paid). When the Collection Statute Expiration Date (CSED) expires, the liability becomes legally unenforceable. Since a release statement must be made within 30 days of the tax liability becoming unenforceable, Form 668(Y)(c) is specifically designed to contain a trigger for the self-releasing statement and the trigger coincides with original CSED. This saves the IRS from having to devote resources to manually releasing liens and NFTLs when the CSED expires.

The trigger on the NFTL is found in column "e" . The last day for refiling ("refile by" date) is the date in column "e" of the NFTL.

When a column "e" date triggers the self-releasing statement, both the statutory lien and the NFTL are released even if the collection statute remains open.

For the majority of NFTLs which have not been paid or satisfied prior to the expiration of the original CSED, the self-releasing language allows the IRS a cost-effective way to fulfill its legal obligation to ensure that the public knows the lien and NFTL have been released.

When there is a need to continue the statutory lien and NFTL, the Form 668-F is used to notify creditors that both the statutory lien and original NFTL continue in full force. However, a refile can only occur when a tax liability remains open and collectible because the CSED has been extended or suspended. Likewise, a release occurring where the CSED remains open and collection actions are proceeding will negatively impact those actions due to the release of the NFTL and statutory lien.

Even though a CSED remains open, a continuation of the statutory lien and NFTL is not required. The decision to refile is based on the circumstances of the case.

The first time a NFTL is refiled, the IRS has 30 days beyond the original CSED to accomplish the task of refiling.

Once a NFTL has been refiled the first time, any subsequent refile period calculation and the new CSED (suspended or extended) calculation follow different rules. Since the subsequent refile period and CSED calculations differ, it becomes important to separately track both the end of the new CSED and the end of the refile period. Even if the period for refiling a NFTL is open, if the CSED expires, then the IRS is required to release the statutory lien and any associated NFTLs within 30 days of the CSED expiration.

CSED: The collection statute expiration date is the date by which the IRS must collect the debt owed or the authority to collect the debt expires. The CSED period is normally ten (10) years unless it has been extended or suspended such as by submitting an Offer in Compromise (see IRM 5.8.1, Offer In Compromise, Overview) or filing bankruptcy (see IRM 5.9.1, Overview of Bankruptcy). Other situations that can trigger a CSED extension or suspension are identified in IRM 5.1.19, Field Collecting Procedures - Collection Statute Expiration.

Refile: A NFTL refile is a renewal or continuation of both the statutory lien and NFTL. Action to refile can only be taken if the CSED has been extended or suspended. However, refiling is not needed for all cases in which the CSED has been extended or suspended. A refile determination is needed.

Refile Period: The year long time-frame during which the law allows a NFTL to be refiled by the IRS. There are two types of refile periods.

"Refile By" Date: The date by which a notice of lien must be refiled in order to meet the legal requirements and preserve both the statutory lien and original NFTL. This date is distinct and different from the CSED, which is when the liability is deemed unenforceable. Generally, these two date computations run concurrently but will not if the CSED has been extended or suspended.

IRC 6323(g) and Treasury Regulation 301.6323(g)-1 contain the legal instructions, definitions, requirements, and regulations related to refiling NFTLs.

The effect of refiling the NFTL is to continue both the statutory lien and NFTL. Refiling preserves the respective date with which the statutory lien and NFTL compete with other creditors.

The effect of failure to refile is to extinguish the statutory lien (if the NFTL contains a self-releasing statement) and invalidate the NFTL.

Since there is only one statutory lien but that statutory lien may be reflected on numerous NFTLs, for a refile to be effective in continuing the statutory lien, every NFTL listing that statutory lien must be refiled. If the statutory lien is inadvertently released all NFTLs associated with that statutory lien become invalid as of the date of the release. When this occurs and a statutory lien and NFTL are still needed, the statutory lien must be repaired first through revocation of the release before any NFTL can again be filed.

IRC 6323(g)(3) controls the refile status even if the NFTL column "e" is left blank or contains an N/A.

Any original NFTL will contain a date in column e of Form 668(Y)(c) which is ten years and 30 days after the original assessment date. A NFTL must be refiled on or before that date.

A refiled NFTL will contain a date in column e which is ten years after the expiration of the previous refile period. Past practice has been to put nothing or NA in the Form 668-F column e. The date in column e for any refile should be a date ten years after the expiration of the previous refile period. If at all possible the refiled NFTL should reflect the correct "refile by" date.

The life of the refiled notice of lien is set by law and will not change even if there is no date or an N/A in column e. The NFTL's validity is controlled by IRC 6323(g).

Form 668(F) does not contain a self-release statement but the statutory lien will expire with the CSED so it is imperative that any NFTL (refile or other) which does not contain a self-releasing statement and trigger for that statement, must be monitored and released within 30 days of the CSED in compliance with IRC 6325. ALS is systemically notified when a CSED expires and the module goes into status 12. This should release the refile appropriately but the IRS remains responsible to ensure that the release occurs timely.

In rare situations NFTLs are filed for the first time at a date later than the original CSED. These types of NFTLs are called "NFTLs after original CSEDs" or NAOCs.

Refiling a NAOC follows the IRC 6323(g)(3)(B) rule.

If the refile NAOC request is being sent to CLO for processing, use Form 12636, Request for Filing or Refiling Notice of Federal Tax Lien, to request CLO input the NAOC refile directly into ALS. Prior to completing the Form 12636, alert CLO that an unusual request is being forwarded. Flag the Form 12636 as a NAOC refile request.

See IRM 5.12.7.7.2, NFTL Filed After Original CSED (NAOC), for more information about filing NAOCs.

Without access to ALS: The Centralized Lien Operation (CLO) will input refiles through ALS upon request.

With access to ALS: Follow the instructions in the ALS User Guide , Chapter 9.

At times, circumstances may exist that do not allow time for a refiled NFTL to be created, printed, and processed through ALS. In these cases prepare the refile using Form 668-F from the Publishing catalog. The ICS NFTL template cannot be used.

A refile SLID must be generated by ALS. It cannot be generated by ICS and it cannot be made-up. Use Form 12636 to contact CLO for a SLID. Inform them that the refile is being prepared outside of ALS and provide CLO the reason the refile NFTL is being prepared outside of ALS so they can include that in an ALS history item.

On the PDF enter the information as follows:

If there is a question about a deviation from any of the above instructions, contact CLO FORT, Advisory, and/or Area Counsel for instructions.

Secure email CLO a copy of the recorded NFTL Refile including the recording information.

The refiled NFTL should always reflect the taxpayer's current address.

A notice of change of a taxpayer’s residence will be effective if it is received in one of the following ways:

See the table below for refiling in unusual address situations:

Other than the means specified above, no communication, either written or oral, will be considered as notice of a change of a taxpayer’s residence.

During the required refiling period, the NFTL is to be refiled in all cases in every office in which a prior NFTL (including a refiled NFTL) was filed. This refiling in all locations is extremely important for both real and personal property. If the refiling is not accomplished as and when required, all other NFTL and refiled NFTL are ineffective.

IRM 5.12.7-2, State and Territory Filing Locations, contains the list of state filing locations.

When a CSED has been or will be extended or suspended and additional property is identified in a new location without a NFTL on record, then follow the instructions in the table below.