For best results, please update your browser to the latest version
Q What is a tax lien?
A If a person neglects or refuses to pay a tax administered by the Tax Commission (except for property tax), the tax plus additional penalty and interest is a lien in favor of the state, upon all property and rights to property, both real and personal, belonging to that person.
To notify the public of that lien, the Tax Commission may issue a notice (warrant) to the district court and upon docketing (recording) the notice, it becomes a judgment. The judgment is a lien (tax lien) against the person's property located in the county of the district court the judgment is filed in.
The lien is a public document and lists the delinquent taxpayer's personal and/or business name, the tax type and amount owed at the time the lien is filed. A state tax lien has the same force and effect of a court judgement. A state tax lien, officially called a "Warrant for Delinquent Taxes," allows your personal property (such as automobiles, business equipment, etc.) and real property to be attached and sold if necessary to satisfy the delinquent tax. See sections on "garnishment" or "asset seizure."
If a person or business has entered into a payment agreement with the Tax Commission, a lien may be filed to secure that debt. If the payments are made as agreed, no action will be taken on the lien.
Note: Once a lien has been filed, the amount due listed on the lien is not altered to reflect subsequent payments or subsequent assessments added on to the taxpayer's delinquency.
Example: if a $5,000 tax due is listed on a lien, a credit report a year later would still reflect the same amount, even if the taxpayer had reduced the tax liability to $500, or the taxpayer had incurred an additional tax debt in excess of $5,000.
Q How will I know if I have a lien?
A When the lien is filed, the Tax Commission will send a certified letter containing a "Notice of Lien" to the address listed on your files.
Q How do I remove a lien?
A There are two ways to get a lien removed: First is payment in full of the tax, penalty and interest that has accrued on the debt or full payment based upon a settlement agreement (see offer-in-compromise). Once the outstanding tax, penalty and interest have been paid, the lien will be removed. However, notice that the lien existed will still be available on the public record and the lien will be listed as "withdrawn."
The second way is to prove to the Tax Commission that the lien was issued in error. If this is the case, the public record will show that the lien was issued in error and "withdrawn."
Q How does a tax lien affect my credit rating?
A Credit reporting agencies have access to the county records and state liens frequently are shown on credit reports. A state tax lien will likely prevent a person from selling or refinancing property and may adversely affect other attempts to acquire credit. Even once the tax lien is "satisfied," it will still be reflected on credit reports for years. A "withdrawn" lien will still appear on your credit report, but only reflects that a tax lien was filed in error.
Q If a state tax lien is filed against my property due to a joint tax liability with another person, is there a way I can pay my portion and get my lien removed?
A Yes, it is possible to work out such an agreement with the Tax Commission. Contact the Tax Commission at 801.297.7703 to discuss the procedure.
Q How can I find out if someone has a state tax lien?
A Because liens are public information, you can get that information from the district court clerk's office in the county in which the person owns property. State law prohibits the Tax Commission from providing information on someone else's tax account.