Definition

Noun: A legal claim or hold placed by a government authority on a property due to the owner's failure to pay owed taxes. This claim secures the government's right to the property as collateral for the debt.

Usage

A tax lien is a legal tool used by a taxing authority (like a city or the IRS) to secure unpaid tax debt. It attaches to the property (real estate, personal property, or financial assets) and gives the government a priority claim over other creditors. The lien exists until the tax debt is paid or the property is sold to satisfy the debt.

Examples

• The county placed a tax lien on the house after the owner failed to pay property taxes for three years.
• Before purchasing the commercial building, the lawyer discovered an outstanding tax lien that needed to be resolved.
• Selling the property with a tax lien attached is very difficult, as the lien must typically be paid off at closing.

Advanced Usage

• "To have a tax lien filed against [property/individual]": This describes the official action of the government recording the lien in the public record.
  • The IRS had a tax lien filed against his assets for unpaid income taxes.
• "To be subject to a tax lien": This describes the state or condition of a property or person against which a lien can be or has been placed.
  • Any delinquent property is subject to a tax lien.

Variants and Related Words

• Tax Lien Certificate: A document issued to an investor who pays the delinquent taxes on a property at a government auction. The certificate represents a lien on the property, which the investor can eventually use to potentially acquire the property or collect interest.
• Federal Tax Lien: A specific type of lien filed by the Internal Revenue Service (IRS) for unpaid federal taxes.
• Property Lien: A broader category of legal claims against property, which includes tax liens, mechanic's liens, and judgment liens.

Synonyms

• Charge on property: A general term for a financial claim secured against an asset.
• Encumbrance: A legal right or interest in land that affects its value or use; a tax lien is a type of financial encumbrance.
• Security interest: A legal claim on collateral to secure repayment of a debt.

Related Concepts (Not Phrasal Verbs or Idioms)

• Tax Levy: The actual seizure of property to satisfy a tax debt. A lien is the ; a levy is the of taking the property.
• Judgment Lien: A lien on property arising from a court judgment, analogous to a tax lien in its function as a secured claim.

Noun

1. lien of which a tax collector may avail himself in default of taxes (analogous to a judgment lien)