What does tax lien mean and what can they do to me?

5 Comments

1. Jss says:

   July 23, 2011 at 8:37 pm

   The federal tax lien is a claim against your property, including property that you acquire after the lien is filed. By filing a Notice of Federal Tax Lien, the government establishes its interest in your property as a creditor in competition with other creditors in certain situations, such as bankruptcy proceedings or sales of real estate. Once a lien is filed, it may appear on your credit report and it may harm your credit rating. Therefore, it is important that you work to resolve your tax liability as quickly as possible, before lien filing becomes necessary.

   Once a lien is filed, the IRS generally cannot issue a "Certificate of Release of Federal Tax Lien" until the taxes, penalties, interest, and recording fees are paid in full or the IRS may no longer legally collect the tax.

   JS
   http://www.mytaxes.in

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2. Judy says:

   July 23, 2011 at 8:37 pm

   A tax lien against property you have means that you can’t sell it without IRS permission and they’ll collect the back taxes you owe out of any proceeds.

   They might seize your assets directly and sell them, or take the money you owe from your bank account.

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3. SUPER SUE says:

   July 23, 2011 at 8:37 pm

   Boy oh boy-what can’t they do is an easier question. They can tap into your checking or savings account without you even being notified and withdrawal any and all funds whenever they want. Good Luck.

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4. chatsplas@sbcglobal.net says:

   July 23, 2011 at 8:37 pm

   Pay up! You don’t want to find out. It means you have not paid taxes due, and these are not wiped out in bankruptcy. It means you have made no attempt to pay taxes owed, have not set up a payment plan and have not made monthly payments, and they’re coming after you. The consequences of your series of bad choices are coming at you! The liens can be put against any property you own, against any assets, bank deposits, salary, etc.
   You don’t want the IRS on your back!! They are not quick in the chase, but they are relentless.

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5. wartz says:

   July 23, 2011 at 8:37 pm

   IRS and its state counterparts will file a Notice of Tax Lien with the appropriate recording office (county recorder in my state, California) if your balance due is high. IRS generally does not file a notice of lien if the balance due is less than $5,000. Filing of a tax lien is similar to haveing a judgment filed against you. It makes the fact that you have unpaid taxes a matter of public record and will prevent you from selling real property without clearing the lien. It will also cause your credit rating to take a major nosedive. The tax agency (state or fed) can also take additional collection against you. Normally this would be a levy (garnishment) of your wages or bank accounts. It is not a pretty sight.

   I am an enrolled agent, a tax specialist licensed by the US Treasury Department Office of Professional Responsibility (not an IRS employees) to represent taxpayers the same way as attorneys and CPAs and specialize in clients who have substantial outstanding tax liabilities or long periods of failing to file returns. If you would like some additional information outside this forum, you can send me email through my profile.

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