Notice CP161 - Notice of Federal Tax Lien
IRC Section: IRC § 6320
Response Deadline: N/A
The IRS has filed a lien against you. This is a public legal claim on your property — your home, your car, your business assets. A lien doesn't mean they're seizing your property today, but it means they have a legal interest in it. It blocks you from selling or refinancing real estate without clearing the debt, and it damages your ability to get credit.
A CP161 is a Notice of Federal Tax Lien filing. It informs you that the IRS has filed a public lien against your property and assets to secure the government's interest in your tax debt. A lien is different from a levy — a lien is a legal claim on your property, while a levy is the actual seizure of assets.
Common Triggers
- Unpaid taxes over $10,000
- No payment arrangement
- Lien filed to protect government interest
Resolution Steps
- Step 1: Review the lien amount and property affected
- Step 2: Contact us to discuss lien release or subordination
- Step 3: Consider a payment plan or Offer in Compromise
- Step 4: Don't ignore - lien remains until satisfied
- Step 5: Request lien withdrawal if eligible
Common Questions About CP161
- What's the difference between a lien and a levy?
- A lien is a legal claim on your property — it secures the government's interest but doesn't take anything immediately. A levy is the actual seizure of assets — the IRS takes money from your bank account, garnishes wages, or seizes property. A lien comes first; a levy follows if the debt remains unpaid.
- How do I get a Federal Tax Lien removed?
- You can request a lien withdrawal if your debt is under $25,000 and you enter a direct-debit installment agreement. If you pay the debt in full, the lien is released. The IRS also offers a lien withdrawal program that can remove the public record if you meet certain criteria.
Related Notices
Additional Resources
This is an enforcement notice — the next move matters
This page explains what the letter is. For what to do — the deadline, the steps in order, and what representation changes — go to the action page on our resolution site: IRS CP161: What To Do Now →
No Menus. Just Answers.
Type your question, or tap the mic and just say it — I'm on around the clock and I never put you on hold. The more you tell me, the faster I get you a real answer. No forms to wrestle, no phone tag.
The fastest way to reach us is the chat above.
This form is for prospective clients only. No solicitation. Existing clients — please use the chat or call us directly.