Federal Tax Liens can really make your life miserable! When
your taxes are not paid the IRS establishes a lien against all
of your assets (especially real estate). This gives the IRS
the legal right to collect taxes from the sale of your assets,
which includes just about everything you own.
The lien can be against you, your spouse, or your company.
A lien against your company would seize your accounts receivables.
At this point everything you own is just one short step away
from becoming the property of the United States Government.
Liens filed against you by the IRS also show up on your credit
report and often prevent you from opening a checking account
or borrowing against any assets, like your home. The banks
don't want the extra work when the IRS comes in to take your
money.
With a Federal Tax lien on your record you can't get a reasonable
loan to purchase a car. Think about paying 18-22% interest
on a car that is already too expensive. You definitely cannot
buy or sell any Real Estate. The list is endless.
