IRS TAX LIENS:
An IRS Tax Lien is a lien imposed by law upon a property to secure the payment of taxes. A Tax Lien may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes.
Liens give the IRS legal claim to your property as security or payment for your tax debt. A Notice of Federal Tax Lien may be filed only after:
- • There is an assessment of liability;
- • Filing a Notice and Demand for Payment - a bill that tells you how much you owe in taxes; and
- • A client neglects or refuses to fully pay the debt within 10 days after notification has been made.
If one of the items above is filed on, a lien is created for the amount of your tax debt. By filing notice of this lien, your creditors are publicly notified that the IRS has a claim against all your property, including property you acquire after the lien is filed. This notice is used by the courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate. The lien attached to all your property (such as your house or car) and to all your rights to such property (such as your accounts receivable in the event you are a business).