Tax Lien

Tax Lien

How does a Lien affect you?

A lien is primarily used to secure the government’s interest in taxpayer property with respect to third party debts such as real estates, cars. A lien is most commonly used when the government determined that a taxpayer has an unpaid tax debt that cannot be paid. Although a lien by itself, may not enforce collection against a taxpayer, it adversely impact credit history, ability to 

Unlike a Levy where the government can legally seize your property to satisfy outstanding tax debts, a lien does not.

However, a Federal tax lien is the government’s claim against a taxpayer’s property to satisfy a debt. A Tax lien protects the government’s interests, as it is attached to all your property, including real estate, personal property, and financial assets. This also includes future asset acquisition during the life of the lien. The lien filing occurs when the government sends a “Notice and Demand for Payment” which has not been satisfied. This filing is a public document to alert creditors that they have a legal right to your property.

Unlike a Levy, where the government can legally seize your property to satisfy outstanding tax debts, a lien by itself may not enforce collection against a taxpayer. It does, however, adversely impacts credit history.


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