A tax lien is a process that can be used by the federal or state government in the event that a person fails to pay one of a range of taxes, such as income tax, estate tax, or taxes on personal belongings. If payment is not forthcoming when the taxpayer receives a Notice and Demand for Payment, the next course of action that may be considered is a tax lien, which can be imposed by the federal or the state government.
With a state tax lien the government is able to exercise a legal right over the property of the debtor in order to try and secure the tax that is owed. A Notice of State Tax Lien is issued before this action is taken and this can apply to real estate or personal property depending on the assets that are owned by the taxpayer. This lien then remains on the property in question until the taxes have been settled or other appropriate action has been taken.
Before the Notice of State Tax Lien is issued, a number of steps will be taken by the government. Firstly, your tax liabilities will be assessed after which a Bill for Taxes Due or a Final Bill for Taxes Due will be sent to you. There will then be a waiting period of 35 days within which you must settle the tax debt or come to some arrangement before a Notice of State Tax Lien is issued.