A tax lien puts your assets at risk. To avoid the costly consequences of a tax lien, turn to BC Tax. We provide tax debt solutions for taxpayers in Colorado and throughout the United States.
What Is a Tax Lien?
A tax lien is a legal claim placed on a person’s assets — such as a home, car or bank account — due to their unpaid tax debt. If the person does not attempt to repay their debt, the government may seize and sell their assets.
What’s more, a lien is a public document, which means anyone can check to see if there’s a lien on your home. As a result, a tax lien makes buying or selling a property very difficult.
The federal or state government can put a lien on a property. A federal tax lien takes precedence over all other creditors’ claims. If the IRS intends to put a tax lien on your assets, they’ll send you a Notice of Federal Tax Lien. Once you receive this notice, you can take several actions to stop the lien.