Federal and State Tax Lien

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Federal and State Tax Lien

For a hands-on and comprehensive search for Federal and State Tax Liens turn to Information Direct.


This inclusive search is performed in the deed of records in the specific jurisdiction for all Federal and State Tax Liens that are open and not released.

For liens both Federal and State, the statute of limitations is 10 years filed against a specific individual or company. The search is conducted to allow an employer the ability to gain records that may or may not have an impact on the eligibility for employment depending on the company.

A search is completed with accurate information. Specialists are employed to navigate the channels necessary in accordance with the law to reach and obtain records for Federal and State Tax Liens .

State Tax Lien

A State tax lien is the government's claim on your property. This lien is generally placed when a person or business, or otherwise deemed as a taxpayer, doesn't pay taxes owed. The lien ensures that the government gets first right to your property over other creditors, and not necessarily indicating that authorities will seize your property.

It takes 7 years for state tax lien to be removed from credit reports. According to the Fair Credit Reporting Act, which is the federal law that governs credit reporting, a tax lien is not to be removed from credit reports until 7 years from the date the lien is paid and released. Unpaid tax liens can remain indefinitely.
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Credit Report


Even after an individual has paid off their tax debt in full that was in question, and the tax lien is finally gone, this doesn't clear the individual as far as their cred report goes. Their credit report will still show that a lien was filed at some point in time.

A credit report reflecting a State Tax Lien could give some insight for an employer as to the life circumstances of the applicant and their status for eligibility of employment.

Information Direct employs experienced specialists, court agents, and paralegals throughout the world to conduct hands-on manual retrieval of records. When information is gathered, a summary is provided to the employer for a more comprehensive approach to the reporting at the conclusion of a search.

There are steps you have to take in order to have a lien removed from public records. This is only possible once a lien is paid in full according to the FCRA. You can appeal to have the lien removed from public records, though removal is not guaranteed.

A substantial unpaid bill in the amount of $10,000 for example, the IRS may file a tax lien on your property. This will show up on your credit report, and it can cut your credit score by as much as 100 points.

Federal Tax Lien


A federal tax lien is the government's legal claim against your property when you neglect or fail to pay a tax debt. According to the FCRA, the lien protects the government's interest in all of your property. By all of your property, that means your real estate, personal property and financial assets.

In this instance, A federal tax lien means that the government has the first legal claim to your property, which it can seize and sell to pay off your tax debt. Under the Federal tax lien, the individual has 10 days to pay the tax debt in full. They pay off amount includes any and all late penalties, interest, and fees. If you don't pay, the IRS can file a tax lien against you.

IRS Information


When you have a Federal Tax Lien, the IRS puts your balance due on record. You will be sent a bill that explains how much you owe. This will come to you as a Notice and Demand for Payment. This information will turn up in the result from a search and will be provided to an employer to help limit liability upon making a hiring decision.

These above mentioned results will transpire if you neglect or refuse to fully pay the debt in time according to the IRS. The IRS will then file a public document, the Notice of Federal Tax Lien, and this will alert creditors that the government has a legal right to your property.

Removing A Lien and Discharge of Property


The best way to remove a Federal Tax Lien , is to pay your tax debt in full. When you pay your tax debt in full, the IRS will release your lien within 30 days after you have paid your tax debt. Another option is a discharge of property. The IRS states this as removing the lien from specific property.

While this helps remove a lien, if a screening is in process for an applicant, and results of a Federal and State Tax Lien appear, the result will be or can be provided in the records provided to the employer. This may indicate the status of the lien and/or the outcome.

The Impact of a Lien on an individual will affect their assets, credit and business. A lien attaches to all of your assets such as property, securities, vehicles and to future assets acquired during the lien process, or perhaps on the screening process for an applicant.

The effect on credit may limit you from getting credit overall once the IRS files a notice of Federal Tax Lien . And perhaps just as impactful, is that the lien attaches to all business property and to all rights to business property, including accounts receivable.

Federal and State Lien Prevention


A tax lien can be avoided by simply filing and paying all your taxes in full and on time. The IRS states that if you can’t file or pay on time, it is critical that you don’t ignore the letters or correspondence you get from the IRS, usually received by mail.

For an individual who can’t pay the full amount owed, payment options are available. Payments options might be a great way to help you settle your tax debt over time. While the helpful information to avoiding liens can be used after the fact, or as preventive measures, Information Direct will complete a Federal and State Tax Lien search as requested.
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