What Is The Difference Between A Federal Tax Lien And A Notice Of Federal Tax Lien? There’s an important distinction between the federal tax lien and the Notice of Federal Tax Lien. The federal tax lien automatically applies to all of your property when you fail to pay taxes after a demand for payment. The Notice of Federal Tax Lien is an official record that gives the public notice of the lien. The Notice of Federal Lien needs to be filed with state or local authorities, such as the country recorder of deeds. When the IRS removes the notice from public records, it is referred to as a “withdrawal.”