Federal or State Tax Liens can really make your life miserable! When your taxes are not paid the IRS and/or State establishes a lien against all of your assets (especially real estate). This gives them the legal right to collect taxes from the sale of your assets, which includes just about everything you own.
The lien can be against you, your spouse, or your company. A lien against your company would seize your accounts receivables. At this point everything you own is just one short step away from becoming the property of the Federal or State Governments.
Tax Liens filed against you are public record that you owe various taaxes. They also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don't want the extra work when the IRS or State comes in to take your money.
With a Federal or State Tax lien on your record you can't get a reasonable loan to purchase a car. Think about paying 18-22% interest on a car that is already too expensive. You definitely cannot buy or sell any Real Estate. The list is endless.
