When the IRS files the NFTL as public record, it puts your creditors on notice that the IRS has a claim. While NFTLs no longer appear on credit reports, they may still affect your ability to get credit if a potential creditor uses other resources, such as public records, to discover the NFTL. The lien attaches to property specified in the notice or if none is specified, all of the property of that taxpayer being held in your name. For more information, refer to Publication 594, The IRS Collection Process (PDF), and see NFTL
How did I get here?
A third party has been identified as a nominee or alter ego of a taxpayer with a tax balance which has not been paid, and the IRS has filed a public document, the NFTL, with the local and/or state authorities to alert creditors that the government has a right to your interests in property specified in the notice or if none is specified, all of the property being held in the name of the third party named in the notice.
What are my next steps?
You have a right to appeal the filing of this Notice of Federal Tax Lien through the Collection Appeals Program (CAP). If you disagree with the decision to file the NFTL, you can contact the phone number located on the letter and request to a manager’s conference. If the manager sustains the decision, you can submitted a request for Appeals consideration verbally, in writing, or via Form 9423 to the IRS employee within three business days of meeting.
See Publication 1660, Collection Appeal Rights, for a full explanation of the CAP.