What happens when you fail to pay the money you owe to the state government? Nothing good, that’s for certain. However, this is a situation a large number of Americans find themselves in.

When you fail to pay a certain tax debt after a certain amount of time, the government may put out a lien against you. This is a legal claim to your property that they may enact to seize goods until you pay what you owe.

If you’re in a situation where you may be facing one of the IRS payroll tax liens, how might it affect your life? Will this become part of the public record, potentially tarnishing your reputation and ability to work?

Read on and we’ll walk you through what you need to know.

What is an IRS Tax Lien?

Understanding what you’re up against can be a big difference when it comes to dealing with the IRS. So what exactly is a tax lien and what does it mean when the IRS sets one up against your property?

The lien essentially protects the government’s interest in your finances and the money you owe. When you fail to pay the government your taxes, they might size everything from real estate to personal property in order to manage your debt.

How easy is it for the IRS to create a tax lien? All it requires is for them to put the balance that you owe officially on the books and send you a bill for the amount.

If you refuse to pay the debt and a certain amount of time goes by, they have the full legal ability to create a lien. This may be difficult to swallow, but it’s the truth.

Are IRS Payroll Tax Liens Part of the Public Record?

If the IRS puts out a lien, will other people and businesses be able to be made aware of it? The short answer, unfortunately, is yes. Tax liens are made to be part of the public record which means anyone can look them up.

Because of this, the existence of a tax lien can have a strong negative impact on your credit score. Credit companies will be able to access this information and adjust your credit reputation as a result.

As liens are public records, you should also be able to look up and access this information on your own. If you’re uncertain whether or not the IRS has placed a lien on your property, you can look up the information online.

The IRS also has a department that handles liens that you can call to check on the status of your property. This lien won’t be lifted until you’ve either started a payment plan or paid the amount you owe in full.

Understanding Payroll Tax Liens

Are tax liens public? If you owe money to the government it’s important to understand how IRS payroll tax liens work. The above information can help you decide what actions to take if you’ve found yourself in this predicament.

Do you need more help dealing with the IRS? Looking to lower the amount of money you owe? Contact us for a free case review.