Tax Lien
A legal claim by the government against a taxpayer's property when they fail to pay tax debt. The lien protects the government's interest in all property owned by the taxpayer.
Tax Lien
A federal tax lien is the government's legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government's interest in all your property, including real estate, personal property, and financial assets.
When Liens Are Filed
The IRS files a tax lien after they assess your liability, send you a bill (Notice and Demand for Payment), and you don't pay the debt in full within the time specified. If you're unsure about your tax obligations, you can verify tax relief options available to you.
Impact on Credit and Property
Tax liens become public record and can significantly damage your credit score. They attach to all property you currently own and any property you acquire in the future while the lien remains in effect. Professional tax relief assistance can help you understand your options for lien resolution.
Difference from Tax Levy
A lien is a claim against property, while a levy is the actual seizure of property. The lien establishes the government's right to your property, but doesn't take it.
Resolution Options
- Full Payment: Liens are released when debt is paid in full
- Payment Plans: May keep liens in place but prevent additional collection
- Lien Withdrawal: Possible in certain circumstances
- Lien Subordination: Allows other creditors to move ahead of the IRS
Examples
- A lien filed against your home prevents you from selling without addressing the tax debt
- A business lien can affect your ability to obtain credit or financing