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Understanding a Federal Tax Lien Part I

Understanding a Federal Tax Lien Part I:

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after:

The IRS:

* Puts your balance due on the books (assesses your liability);

* Sends you a bill that explains how much you owe (Notice and Demand for Payment); and

You:

* Neglect or refuse to fully pay the debt in time.

The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property. For more information, refer to Publication 594, The IRS Collection Process (PDF) .

Next week – How do you remove a lien against your property?

(IRS.gov) (TTT 12/04/18)