A lien ensures that the required obligation is met, it isthe interested granted over some property; whereas a tax lien is a lien that isplaced on a particular property to ensure payment of taxes.  These liensare imposed on failure to pay taxes, personal property tax, income tax,delinquent tax or a real property tax.  If you happen to have ignoredpaying your taxes even after the demand notice, then the complete tax amountalong with the interest and fines will become the tax lien to the government onany personal or real property that belongs to you. 



The tax lien is effective as of the IRS assessment date, which means the datewhen the tax is recorded in the revenue records.  If you received thedemand to pay the tax and you do not do so in ten days, from the date ofnotice, the lien is activated automatically.

The worst part about tax liens is that they are recorded on your most importantcredit report and this is really a bad thing to happen as credit reports last along time, as long as seven years after payment is done and in cases of unpaidtax liens, it will show up on the credit report for more than fifteen years oreven forever.    

This affects the credit score and that is the end of you ever trying to find alender as you will be considered as high risk and your value in the loan marketis low.

It is crucial to clear the credit reports of tax liens, by ensuring that youpay the taxes that are pending in full, and show the receipts to the tax agencyand request them to remove the lien.  You should also ensure that thecredit report reflects the tax settlement. Although, the tax lien will continueto show up on the credit report, the credit rating will not suffer this way.

 

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