Notice of Federal tax lien
The IRS is going to let everyone know about your tax debt
When you repeatedly ignore the IRS notices and demands to pay your taxes, the agency will bring forward a claim known as a tax lien.
If you don’t take action, the IRS will file a Notice of Federal Tax Lien, making your tax debt public knowledge. The notice is injected into the public records and attaches to your name, property you own and any other assets you have rights in. From this moment forward, any credit report or background check will show that you owe the IRS X amount of money.
Potential creditors and lenders will see the tax lien in your records and may impose higher interest, limit the amount you can borrow, or deny you service entirely. If you try to sell a property, its title will show the tax lien. Any buyer will have to take the property with the lien attached. This will either force you to sell at a major discount or pay off the IRS first.
A tax lien will stay on your record until every nickel is paid off to the IRS. In addition, it will always display the full amount owed until it is removed. So, even if you have $10 left to pay, the tax lien may still show $100,000, for example.
While this is certainly an unpleasant situation, a tax lien is just a public record of your tax debt. If you still don’t comply, the IRS will proceed with a forced collection on your assets knows a a tax levy.