Types Of IRS Liens

Many taxpayers in the United States do not realize it, but there are many different types of IRS liens. When the Internal Revenue Service issues a lien, it is an official claim that is issued against the taxpayer’s property as a direct result of non-payment on taxes that are owed. Unlike an IRS levy, a lien does not actually withdraw the property from the taxpayer. In the same respect, it does not restrict the taxpayer’s right to transfer ownership of the property.

IRS liens can result in many complications for the taxpayer. Examples of common issues include the inability to make purchases that require credit, public notices of a tax debt, and other situations similar in nature. Here, you will learn about the types of IRS tax liens that may occur against an individual.

The first among the different types of IRS tax liens is referred to as a “Consensual Lien”. A contract that covers property such as loans on vehicles and recreational vehicles, mortgages on a home or homes, and interest that is paid on security accounts may qualify when it comes to this type of lien imposed by the IRS. The second of the most common types of IRS liens is referred to as a “Common Law Lien”.

This is where the Internal Revenue Service rightfully takes possession of the property of another until appropriate measures of the payment of taxes in default are met. While these two types of IRS liens are considered to be the most common, they can still result in financial challenges of the taxpayer found at fault.

The third among the IRS liens is referred to as a “Statutory Lien”. If the Internal Revenue Service finds a taxpayer in the United States to be “Delinquent” when it comes to the payments on their income taxes, an order to start the lien will develop from the “Recorder of Deeds Office” which is part of the IRS.

This will result in a type of seizure of the determined property in an effort to obtain payment that is due on behalf of the taxpayer at fault. The next of all the IRS liens is the “General Lien”. This lien will go against all of the property of the individual that owes taxes. These types of IRS liens will constitute measures taken against land, homes, vehicles, and other types of property that is obtained by the taxpayer.

The last of the IRS liens is identified as the “Specific Lien”. When a taxpayer is found in default of monies owed, the Internal Revenue Service will place one lien against one, “specific” piece of property. While this is considered mild in comparison to the “General Lien”, it can still be very challenging towards the individual that is subjected to it. In order to avoid IRS liens, you should make every effort to ensure that you pay your taxes in full. If you have been subjected to any of these IRS liens, you may need an IRS tax attorney or other type of tax restoration service to assist you.

Please also check out my other guide on individual tax return and free tax filing

Irs Liens

irs lien search

Types Of IRS Liens

Related Articles: