What happens if I sell my property with a tax lien?

If you sell your property with a tax lien, the IRS maintains its right to claim the outstanding amount from the sale proceeds. The lien attaches to the property and transfers to the new owner once the sale is complete. It is important to note that the lien takes priority over other creditors, meaning the IRS will be paid first from the sale proceeds before any other debts are settled. As the seller, you are responsible for fulfilling your tax obligations, and failing to do so may result in the IRS initiating collection actions against you or your assets. It is advisable to address any tax lien issues before putting your property up for sale to avoid disruptions during the process.