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:
* 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
* 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)