Watch Related Videos
comments
What is a federal tax lien? More specifically and to the question, what is a federal tax mortgage lien? A federal tax mortgage lien is a notice that the IRS places on a taxpayer letting them know that they have a right to property owned by the taxpayer. This property is going to be seized by the IRS in order to satisfy an outstanding tax payment owed by the taxpayer. In order to stop the lien, a taxpayer has 10 days in which to make payment arrangements on the outstanding tax amount.
Who Levies Property Taxes?
It should be noted that when talking about a mortgage lien, generally it is states and local communities and not the federal government that levy property. That is because the federal government does not charge property taxes. Property taxes are used mainly by municipalities and local taxing authorities in order to raise revenues. Some states also assess property taxes but by and large charge sales and income taxes. The federal government taxes individual earned income.
Issuing a Notice of Federal Tax Levy
A federal tax mortgage lien would be a specific lien designed to go after property held by the taxpayer. This lien works like a notice of federal tax lien in that it is filed in the state or county where the delinquent taxpayer resides. Once filed, and if filed ahead of other creditor demands, its takes primary position. This means that the federal government has priority claim over the property in order to satisfy the outstanding tax payment.
