A tax lien is a document publicly filed in the county of your last known address on file with the IRS. The biggest impact is that this appears on your credit report making it hard to open new bank accounts and credit cards.
Creditors who are willing to lend you money may charge you the maximum interest rate they are permitted by law.
If you own your house, you will not be able to sell your house until the amount owed for taxes is paid in full.
If the taxes are related to a business you own, the lien will allow the IRS to contact every customer in your accounts receivable instructing them to mail their payments directly to the IRS instead of you.
A tax lien is typically not removed until you have paid your tax debt in full. However, we have successfully negotiated the withdrawal of a tax lien before the tax debt is paid off in qualifying situations.