Federal Tax Liens can make your life miserable! When your taxes are not paid, the IRS can establish a lien against all of your assets (especially real estate). This gives the IRS the legal right to collect taxes from the sale of your assets, which includes almost everything you own.
The lien can be against you, your spouse or your company. A lien against your company could seize your accounts receivables. At this point everything you own is one short step away from becoming the property of the United States Government.
Liens filed against you by the IRS also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don't want the extra work when the IRS comes in to take your money.
With a Federal Tax lien on your record, you cannot get a reasonable interest rate when you want to purchase a car. You definitely cannot sell any Real Estate. There are many other items that will also impact you.
