Tax Lien Help


A tax lien is the government’s claim on your property and is generally placed when a taxpayer, such as a business or individual, fails to pay taxes owed. This does not mean that taxation authorities will seize your property, it just ensures that they get first right to your property over other creditors. A tax lien will remain in place until the tax liability has been paid off, the statute of limitations on the debt expires, or if the taxpayer meets the new IRS Fresh Start Initiative requirements.

Tax Lien Process

When a lien is filed it should not come as a complete surprise. The IRS (and some other state taxing authorities) follow the process below before filing a tax lien on a taxpayer’s property:

  • Assess a tax amount owed through the taxpayer filing a tax return or the taxing authority filing a substitute return
  • A tax bill is sent to the taxpayer’s last known address which demands payment.
  • Taxpayer does not pay the tax bill owed in allowed time.

 After those three conditions are met, the IRS may file a Notice of Federal Tax Lien. This notice will give alert to other creditors that the government has claim to the taxpayer’s property.

Impact of a Tax Lien

Once a lien has been filed it will appear on the taxpayer’s credit report. With a tax lien being present on a credit report it will make it difficult for the individual or business to obtain future credit or loans (e.g. buying a car, home, obtaining a new credit card or signing a lease for a rental). It will also likely have an immediate impact on the taxpayer’s credit score.

The existence of a tax lien will significantly increase the risk to any other lender because the IRS or state taxing authorities get first priority of assets over other lenders. This can make financial life very difficult for the taxpayer.


Contact us now so that we may assess your personal situation and work to address your tax lien immediately.