Tax Lien Definition
A tax lien gives the IRS the rights to property owned by a person who has failed to pay their taxes on time.
When a taxpayer does not remit at least $10,000 of their taxes owed, the government can file a tax lien against them. The tax lien secures the IRS’s rights to that person’s property, as well as to property they may purchase in the future. A tax lien does not let the government seize a person’s property. However, if a delinquent taxpayer sells their property, the IRS collect the profits as payment. A Notice of Federal Tax Lien filed by the IRS alerts creditors of the tax debt until the lien is lifted.
What Is a Tax Lien?