Florida runs on construction. Roofs after storms, kitchens, pool enclosures, additions, and the endless new builds across eastern Hillsborough. Florida’s Construction Lien Law, Part I of Chapter 713 of the Florida Statutes, protects the people who do that work by giving them liens on the property they improve.

The federal tax lien protects the United States. When a Tampa homeowner who owes the IRS hires a contractor, or a contractor who owes the IRS is owed money on a job, the two systems collide. Here is how federal law sorts it out.

How Florida construction liens work, briefly

Florida’s Construction Lien Law gives contractors, subcontractors, suppliers and laborers who improve real property a lien for the value of their work, if they follow the statute’s notice and recording rules. On most jobs, the owner records a Notice of Commencement before work starts. Under Florida law, construction liens generally relate back to the recording of that Notice of Commencement for priority purposes against other Florida claims.

Lienors then must serve required notices and record a claim of lien within the statutory deadlines. Miss a deadline and the lien can be lost. The statute is detailed and strict, which is why contractors in Tampa tend to know it well.

The federal definition controls priority against the IRS

Under IRC 6323(a), a filed Notice of Federal Tax Lien is required before the federal lien is valid against four protected classes: purchasers, holders of security interests, mechanic’s lienors and judgment lien creditors. A Florida construction lienor can be a mechanic’s lienor under federal law. The question is when.

IRC 6323(h)(2) defines a mechanic’s lienor as any person who under local law has a lien on real property, or on the proceeds of a contract relating to real property, for services, labor or materials furnished in connection with the construction or improvement of the property. Then it adds a timing rule: a person has a lien on the earliest date the lien becomes valid under local law against subsequent purchasers without actual notice, but not before he begins to furnish the services, labor or materials.

That last clause matters in Florida. A Notice of Commencement may be recorded weeks before a particular subcontractor shows up. For federal tax lien priority, that subcontractor’s lien does not date from the Notice of Commencement. It dates, at the earliest, from when that lienor began furnishing work or materials. If the IRS filed its notice in between, the IRS is ahead.

The residential repair exception, with the 2026 number

Congress carved out a superpriority for small residential jobs in IRC 6323(b)(7). Even if a Notice of Federal Tax Lien is already on file, the federal lien is not valid against a mechanic’s lienor for repair or improvement of a personal residence containing not more than four dwelling units, occupied by the owner, if the contract price on the contract with the owner is not more than the statutory limit.

The statute says $5,000, but that figure is adjusted for inflation. For 2026, Rev. Proc. 2025-32 sets the limit at $10,010. A Tampa roofer who replaces part of an owner-occupied home’s roof under a $9,500 contract fits inside the exception. The same roofer on a $24,000 full replacement does not.

Three conditions do the work: the property is the owner’s occupied personal residence with four or fewer units, the lien is for repair or improvement of that residence, and the contract price with the owner is at or under the limit. Splitting one job into several small contracts to get under the number invites a fight.

When the homeowner owes the IRS

For a homeowner with a federal tax lien, construction work raises practical problems:

  • Contractors may check. A careful contractor searching the Hillsborough County Official Records will see the federal tax lien notice. Expect requests for deposits, joint checks or payment in full up front.
  • Insurance money. After storm damage, insurance proceeds are often paid jointly to the owner and the mortgage lender. The federal tax lien attaches to the owner’s rights in those proceeds. Working with the lender and the IRS before money changes hands avoids nasty surprises.
  • The IRS sees improvements as equity. A major renovation increases the value of the house, which increases what the IRS considers available in an offer in compromise. See Florida home equity in an offer.
  • Paying a contractor instead of the IRS is a judgment call. Necessary repairs to keep a home habitable are a legitimate expense. Elective upgrades while the IRS is unpaid will be noticed.

When the contractor owes the IRS

The other side is just as common. Construction businesses in Tampa run into payroll tax trouble often enough that I have a separate guide on the construction industry and the IRS. When a contractor owes the IRS, the federal tax lien attaches to the contractor’s rights to payment, including receivables and its own construction lien rights.

That means the IRS can levy on what a homeowner or general contractor owes the business. A homeowner served with an IRS levy for money owed to a contractor must honor it under IRC 6332, and paying the contractor instead can make the homeowner personally liable for the amount. Homeowners and general contractors who receive a Form 668-A naming a sub should take it seriously and get advice before writing the next check.

Storm season adds pressure

After a hurricane or a major storm, Tampa homeowners need repairs fast, insurance money is moving, and contractors are stretched thin. That is exactly when lien problems get created.

A few points to keep in mind if you owe the IRS and your home is damaged:

  • Insurance proceeds for your home are your property. The federal tax lien attaches to your rights in them, subject to the mortgage lender’s rights under the loan documents.
  • Paying a contractor to restore a damaged primary residence is a legitimate, necessary expense. Keep the contract, invoices and proof of payment. If the IRS later asks where the insurance money went, you will have the answer.
  • Large repair contracts will exceed the $10,010 residential limit for 2026, so contractors on those jobs do not get the 6323(b)(7) superpriority. Expect them to ask for payment terms that protect them.
  • If a Revenue Officer is assigned to your case, tell the Revenue Officer about the damage and the insurance claim before the money arrives. Surprises create levies. Disclosure creates conversations.

Contractors: protect yourself before the job

If you are a Tampa contractor, a few habits will save you money:

  1. Search the owner. A quick search of the Hillsborough County Clerk’s Official Records will show any federal tax lien notice against the owner. My guide on finding an IRS lien in the Hillsborough records shows how.
  2. Know the 2026 number. Under $10,010 on an owner-occupied residence of four units or fewer, you have the 6323(b)(7) superpriority. Over it, you do not.
  3. Document when you began work. Federal priority runs from when you began furnishing labor or materials, not from the Notice of Commencement.
  4. Follow Florida’s Construction Lien Law to the letter. A lien that is invalid under Florida law has no federal priority at all.
  5. Adjust payment terms. Deposits, progress payments and joint checks reduce exposure.

Property taxes have an even stronger priority than any contractor. See property tax liens versus IRS liens. GetIRSHelp.com has a guide for small businesses dealing with IRS problems.

In construction, the person who files first usually wins. Against the IRS, the person who started work first, and stayed under the number, has the better shot.