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Against the backdrop of tightening household finances, federal tax lien filings are increasing, and consumer advocates are raising the alarm.
The Internal Revenue Service is behind those filings, and one advocate has described the liens as a "kiss of death," a phrase that captures their reach well past the original tax obligation and into borrowers' credit files and employment records.
How a federal tax lien extends its grip A federal tax lien is a government claim against a taxpayer's property when a tax debt goes unsettled. Its power in practice comes partly from its public nature.
The lien enters the public record, where lenders and employers can access it, and the filing creates consequences that outlast the immediate collection effort.
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