What is an IRS Lien?
IRS Tax Liens give IRS a legal claim to your property as security or payment for your tax debt. A Notice of Federal Tax Lien may be filed only after IRS: • Assesses the liability; • Sends you a Notice and Demand for Payment – a bill that tells you how much you owe in taxes; and • 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. The lien then serves as a public notice that they have a claim against all of 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 of 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).
