IRS Tax Liens

The Internal Revenue Service (IRS) and state taxing agencies, like the Comptroller of Maryland, will file tax liens against taxpayers who owe money to the government. The the IRS (or state) tax lien is generally filed in the local court where the taxpayer lives or owns property. The tax lien will attach to all property owned by the taxpayer in the jurisdiction where the tax lien was filed, and the tax lien will show up on the taxpayer’s credit report.

While the tax lien may not generally affect the taxpayer immediately, the tax lien will have a significant effect when the taxpayer attempts to obtain financing or seeks to sell the property located in the jurisdiction where the tax lien has been filed. Tax liens will also affect a taxpayer upon an applications for certain jobs in the financial industry or if the taxpayer seeks to apply for a security clearance. A tax lien can also affect a taxpayer seeking to purchase a home or vehicle because the lender will be concerned about the security interest.