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Published:   |   Last Updated: October 24, 2024

Letter 3886

Special Condition Notice of Federal Tax Lien Filing – Taxpayer

The IRS has filed a Notice of Federal Tax Lien (NFTL) against a third party the IRS has identified as your nominee or alter ego for the unpaid balances located on the Form 668(Y)(c) enclosed with the letter.

Where am I on the Roadmap?

Overview

You have a balance on your tax account which you have not paid and the IRS has filed a public document, the Notice of Federal Tax Lien (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 your property being held in the name of the third party named in the notice.. 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. See Form 668 (Y) (C) for more information.

I need more information

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What does this mean to me?

  • The balance must be paid immediately to stop other collection actions.
  • The NFTL is a public record that can affect you and your property and assets. 
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How did I get here?

A third party has been identified as your nominee or alter ego in the letter 3886 has and you have a tax a tax balance which has not been paid. 

When the IRS isn’t paid, they can file a public document with the local and/or state authorities. 

When the IRS files this special NFTL, it alerts creditors you are associated with the nominee and/or alter ego and you owe the government. 

The NFTL secures the priority of the government’s claim to the property specified on the notice, if none is specified, then all your property that is being held in the name of the nominee and/or alter ego is secured by the lien.

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What are my next steps?

  • Pay the amount you owe or consider a collection alternative to stop additional collection actions. See payment options for more information. 

 The IRS will issue a Certificate of Lien Release 30 days after either: 

  • the full amount, including penalties and interest, is paid;, 
  • IRS accepts a bond guaranteeing payment of the amount owed;, 
  • IRS determines the liability is not owed, or the liability has been reduced to zero;, or 
  • the IRS is no longer legally able to collect the tax;,
  • If you disagree with the filing of this NFTL you can request a conference with the Office of Appeals using a Form 9423, Collection Appeal Request. See Publication 1660, Collection Appeal Rights, for a full explanation of the CAP process. 

General Resources

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The Taxpayer Advocate Service is an independent organization within the IRS. TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for free TAS help if your IRS problem is causing financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS, or if you believe an IRS system, process, or procedure just isn’t working as it should.

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your local advocate’s number:

Low Income Taxpayer Clinics (LITCs) assist individuals whose income is below a certain level who need to resolve tax problems with the IRS. They also provide education, outreach, and information on taxpayer rights to individuals who speak English as a second language. LITCs represent taxpayers in disputes before the IRS and courts and help taxpayers respond to IRS notices and correct account problems. Services are offered for free or a small fee. LITCs are independent from the IRS and TAS. For more information or to find an LITC near you, see the LITC Page or Publication 4134, Low Income Taxpayer Clinic List. You can also request Pub. 4134 by calling 800-TAX-FORM (800-829-3676).

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