Technically, a lien is created when the tax debt is assessed. The lien becomes perfected when a Notice of Federal Tax Lien is filed in the county in which your property is located. A tax lien is like a mortgage because it prevents you from selling property until the tax is paid. It show ups up on title to your real estate, and it’s reported on your credit reports.
Wage and bank levies are perhaps more crushing to the taxpayer than a lien. An IRS levy seizes bank accounts, wages, disability checks, cars, and other property – to pay the delinquent tax.
You have rights to defend the filing of a lien. And steps can be taken to prevent or stop the issuance of a levy. To successfully assert your rights and protect your property, it is important to be armed with every legal collection defense available. If you would like to know more about how to defend against IRS collection and eliminate tax liability, get the free book, How to Get Tax Forgiveness.