What is a Tax Lien on Property?
A lien is a legal claim against your property such as your home or vehicle, or rights to property such as accounts receivables if the debtor is a business. Contacting the Internal Revenue Service (IRS) or the state to make payment arrangements is the best way to avoid a tax lien.CauseIndividuals who fail to pay taxes, such as income or property tax, can be subject to a federal or state tax lien.Federal LienThe IRS files a federal tax lien after it has evaluated the amount owed, sent you a bill stating how much you owe, and you did not pay the tax within 10 days after its notification.State LienState tax liens vary by state. Most states file a lien after they have evaluated the liability, sent you a bill for the taxes due, and if you have not paid the bill within a specific time frame.ConsequencesA lien is usually public record and it can harm your credit rating. It can interfere with your ability to get financing on a house or car and approval when leasing an apartment. Furthermore, th
