Tax Lien
TaxGlossary term
Definition
A legal claim the government places on your property when you fail to pay a tax debt. It protects the government's interest in all your assets, including real estate, personal property, and financial accounts. It can damage your credit score.
Related terms
- Tax LevyA legal seizure of property or assets by the IRS to satisfy a tax debt after liens have been placed and multiple notices sent. The IRS can levy wages, bank accounts, Social Security benefits, and other income or assets.
- Installment AgreementA payment plan with the IRS that allows taxpayers to pay their tax debt over time in monthly installments. Various types are available depending on the amount owed, and interest and penalties continue to accrue on the unpaid balance.
- LienA legal claim against property for unpaid debts. Must be satisfied before the property can be sold. Common types include tax liens, mechanic's liens, and judgment liens.
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