IRS Liens

Liens give lienholder a legal claim to your property as security or payment for your tax debt. A Notice of Tax Lien may be filed only after:
Once these requirements are met, a lien is created for the amount of your tax debt. By filing a notice of this lien, your creditors are publicly notified that we have a claim against all your property, including property you acquire after the lien is filed. This notice is used by courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate.

Description

Liens give lienholder a legal claim to your property as security or payment for your tax debt. A Notice of Tax Lien may be filed only after:
  • Liability is assessed against you
  • Notice and Demand for Payment – a bill that tells you how much you owe in taxes is sent to you
  • You neglect or refuse to fully pay the debt within 10 days after you are notified about it.
Once these requirements are met, a lien is created for the amount of your tax debt. By filing a notice of this lien, your creditors are publicly notified that we have a claim against all your property, including property you acquire after the lien is filed. This notice is used by courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate.
The lien attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivable if you are a business).
Once a lien is filed, your credit rating may be harmed. You may not be able to get a loan to buy a house or a car, get a new credit card, or sign a lease. Therefore it is important that you work to resolve your tax liability as quickly as possible before lien filing becomes necessary.
The full amount of your lien will remain a matter of public record until it is paid in full, including all accruals and additions. However, at any time you may request an updated lien payoff amount to show the remaining balance due by calling the toll-free customer service telephone number at 1-800-913-6050. An IRS employee will issue you a letter with the current amount that must be paid before we release the Notice of Federal Tax Lien.

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