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IRS CP297 Notice: Federal Tax Lien Filed

The IRS Has Filed a Lien Against Your Property

Quick Answer: The CP297 confirms that the IRS has filed a Notice of Federal Tax Lien (NFTL) against you. This lien attaches to all your property and rights to property, affecting your credit and ability to sell or refinance assets.

Response Deadline: 30 days for CDP hearing request

What the CP297 Notice Means

A federal tax lien is the IRS's legal claim against your property. It protects the government's interest in all your property, including real estate, personal property, and financial assets.

Who receives this notice: Taxpayers who owe more than $10,000 and have not paid or made arrangements after receiving required notices.

Important Deadline

30 days for CDP hearing request: You have 30 days to request a Collection Due Process hearing to challenge the lien or propose alternatives.

What Happens If You Don't Respond

  • The lien appears on your credit report
  • Your credit score will significantly decrease
  • You cannot sell or refinance property without IRS release
  • The lien attaches to future assets you acquire
  • Business credit and financing become difficult
  • The lien is public record

Your Resolution Options

  • Request a CDP hearing within 30 days
  • Pay the debt in full to release the lien
  • Set up a Direct Debit Installment Agreement for lien withdrawal
  • Apply for lien subordination or discharge
  • Submit an Offer in Compromise

Recommended Next Steps

  1. 1Understand that the lien is already filed - focus on resolution
  2. 2Request a CDP hearing if you want to challenge it
  3. 3Explore lien withdrawal options through payment plans
  4. 4Consider the impact on any planned property transactions
  5. 5Work with a tax professional to develop a resolution strategy

Frequently Asked Questions About CP297

While tax liens no longer appear on credit reports from the three major bureaus (as of 2018), they are still public record and can be found by lenders, landlords, and employers. The underlying debt and any related collection activity can still impact your creditworthiness.

Yes, but the IRS lien must be satisfied from the sale proceeds or the IRS must agree to subordinate or discharge the lien. You'll need to work with the IRS to facilitate any property sale.

A lien release removes the lien after the debt is paid. A lien withdrawal removes the public Notice of Federal Tax Lien as if it was never filed - this is better for your credit. Withdrawal is possible through certain payment plans.

A federal tax lien generally lasts 10 years from the date of assessment, plus any extensions. The IRS can refile the lien to extend this period if the debt remains unpaid.

It's difficult but possible. Some lenders will work with borrowers who have tax liens if you're in an active payment plan and can show the lien will be subordinated. FHA loans have specific guidelines for tax lien situations.

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