Time Frame

• The statute of limitations on federal tax liens is 10 years. Once the statute of limitations expires, the IRS has the option to either release or renew the tax lien. Tax liens will continue to appear on your credit report for seven years after you pay off the lien or the statute of limitations expires.
  
  

Features

• A tax lien grants the IRS the right to seize your property. The likelihood of seizure is greater the less you owe on the property. If, for example, your home is worth $200,000 and you only owe your mortgage lender $50,000, you have $150,000 worth of equity in the property--making it a viable target for IRS foreclosure.
  
  

Effects

• After foreclosing on your property, the IRS will auction the property through the U.S. Department of the Treasury's website. You can prevent the tax lien from resulting in a property seizure and subsequent auction by paying off your tax debt in full or negotiating a settlement with the IRS. If the IRS accepts your settlement proposal, it will remove the tax lien and allow you to repay your back taxes in installments.