Tax Liens

When a taxpayer owes back taxes to the IRS, the IRS gains a tax lien on all that person's assets after meeting certain statutory requirements. The IRS has the power to collect back taxes by levying on taxpayers' property as a result of a tax lien. A tax lien attaches to all rights, title and interest of the taxpayer. Once the IRS has a tax lien on all of taxpayer's assets, IRS may enforce that lien by administratively levying his or her assets.

The effect of the Federal IRS Tax Lien statute is that when any person fails to pay any assessment of tax, plus interest, penalties, or costs, a lien in favor of the United States arises upon all property and rights to property, whether real or personal, tangible or intangible, belonging to the taxpayer. Even if the taxpayer makes partial payment, a tax lien will arise for the balance of the tax.

IRS tax lien is filed by the government to protect its interests. Recorded with one or several county recorders, an IRS tax lien basically tells the world that you owe back taxes to the IRS, and is generally devastating to the taxpayer's credit. tax liens make it very difficult to obtain credit or to sell real estate.

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