IRS Tax Lien After an Installment Agreement or PPIA — What You Need To Know

At Mike Habib, EA, we work hard to resolve your tax issues through effective solutions like Installment Agreements (IA) and Partial Payment Installment Agreements (PPIA). These arrangements help you stay compliant and protect you from enforced IRS collection actions — but many taxpayers are surprised to learn that the IRS may still file a Notice of Federal Tax Lien (NFTL) even after the agreement is approved.

Let us clarify what this means — and why there’s no need for panic.

IRS Lien Filing After an IA or PPIA: What It Really Means

I want to clarify something important about the IRS process. Even though we’ve successfully established your Installment Agreement (IA) — or in your case, a Partial Payment Installment Agreement (PPIA) — the IRS may still proceed with filing a Notice of Federal Tax Lien (NFTL). This is a common and standard action when a balance remains unpaid, regardless of whether you’re on a regular IA or a reduced-payment PPIA. The lien serves to protect the government’s interest in the debt, and it does not reflect any problem with your resolution or our work.

You Have Appeal Rights — But There’s a Deadline

Under IRS rules, when a lien is filed, you have the legal right to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals within 30 days of the lien notice. This can provide an opportunity to review the lien filing or explore alternatives, such as lien subordination or withdrawal, depending on your qualifications. If this is something you’d like to consider, let me know and we can review your options together.

The Lien Does Not Interfere With Your IRS Agreement

In the meantime, the lien does not interfere with your installment agreement. The PPIA or IA we secured for you is a valid and enforceable resolution, tailored to your financial reality and fully accepted by the IRS. The lien simply becomes a public record and serves to notify other creditors of the IRS’s claim while the debt remains.

Expect Mailers — but Don’t Be Misled

Also, please be aware: now that the lien is public, you may receive unsolicited letters or scare-based marketing from other firms trying to profit off this situation. These companies monitor lien filings and send aggressive mailers to create confusion. If you receive anything like that, feel free to send it to me for review. There is no need to respond or feel alarmed — your case is already being handled properly and professionally. 

Lien Withdrawal May Be Possible Later

In the future, if you meet certain criteria — like staying current and reducing the tax debt — we may explore the possibility of a lien withdrawal or subordination, but for now, the filing is procedural and does not impact your agreement or legal rights.

Have Questions About a Tax Lien or IRS Agreement?

At Mike Habib, EA, we’re here to guide and protect you every step of the way. If you’ve received a lien notice or marketing letter, don’t panic and don’t go it alone. Reach out to our office and we’ll help you understand exactly where you stand and what your best options are.

📞 Call Today: (877) 788-2937

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