Investor Glossary-tax lienInvestor Glossary-tax lienInvestor Glossary-tax lienInvestor Glossary-tax lienInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Lien

The HTML to link to this page

A tax lien gives a governing, taxing authority a legal claim on property. A tax lien results from the failure to pay assessed taxes and is used to ensure that the taxing authority will be paid. Failure to pay income taxes, city taxes, county taxes, payroll taxes, or estate taxes may result in a tax lien. The resulting claim can lead to the seizure of property. While a tax lien does not always lead to property seizure, it can prevent the property owner from transferring title of the property or using the property as collateral. A tax lien may also damage the credit rating of the individual or business that is the subject of the lien. In the case of mortgaged property, the tax lien supersedes the rights of the mortgage company. A tax lien can be sold at auction and purchased by anyone as an investment. A tax lien may be removed when the tax liability in question is fully paid or an agreement is reached between the involved parties. In the case of a tax lien issued by the IRS (i.e. Federal Tax Lien), the IRS is required to release the Notice of Federal Tax Lien within 30 days of payment by the taxpayers of taxes and interests owed and issue a Certificate of Release of Federal Tax Lien.

Rate this tax lien definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: required rate of return, ex-dividend date, Key Rate Duration, FICO score, VIX, deferred revenue, class C shares, in escrow, wholly-owned subsidiary, reverse mortgage, minority interest, option premium, risk management, LIBOR, irrevocable trust, average price per share, 144a, implied volatility, margin rate, annual return, current ratio, dividends payable, Zero Cost Collar, real GDP, limit order, EBITDA, open position, stock market close, cancelled check, retained earnings, debt service coverage, deferred tax, phantom income, command economy, APR, ex-dividend, FTSE, per diem, 1031 exchange, labor relations, inflation, stock split, covered put, 401a, diluted share, liquidity ratio, balance sheet, 1035 exchange, quality assurance

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use