what is a tax lien 
a tax lien is a legal claim against the assets of an individual or business that fails to pay taxes owed to the government in general a lien serves to guarantee payment of a debt such as a loan or in this case taxes if the obligation is not satisfied the creditor may proceed to seize the assets understanding a tax lienthe federal or state government can place a tax lien on a property if the owner is in arrears on income taxes local governments may place a lien on a property for nonpayment of property or local income taxes the lien does not mean that the property will be sold rather it ensures that the tax authority gets the first claim over any other creditors vying for the creditor s assets the process of a tax lienthe process begins when a taxpayer gets a letter that details how much is owed this is known as a notice and demand for payment if the taxpayer fails to pay the debt or attempt to resolve it with the internal revenue service irs the agency can place a lien on the person s assets this lien attaches to all of a taxpayer s assets including securities property and vehicles any assets the taxpayer acquires while the lien is in effect also apply it also attaches to any business property and the accounts receivable for the business if the taxpayer chooses to file for bankruptcy the lien and the tax debt could continue even after the bankruptcy most debts are wiped out by bankruptcy proceedings but not federal tax debt 1