In the state of Connecticut, federal tax liens are filed almost every day. When most taxpayers think about where a tax lien is filed (to give notice to other creditors), they think about it in terms of real estate. It is true that the IRS files public tax liens against real property owned by seriously delinquent taxpayers, in the town land records. But the IRS wants to make sure that it can collect against your personal property as well. So where are personal property liens filed in Connecticut? They are actually filed centrally with Connecticut Secretary of the State, using the Concord system. This system allows members of the public to search for tax liens on personal property in Connecticut. These federal tax liens are filed alongside other UCC liens. Liens for federal, state and local taxes can do serious damage to a person’s credit report. So this begs the question – why is the IRS out there filing so many of them? I mean, if a taxpayer didn’t have an IRS lien, it is possible that he could borrow the money he needs to pay off the IRS. Now, because of the lien, he cannot do that. The basic rationale for filing all of these liens (including tax liens on personal property) is to make sure that the government protects its “superpriority” rights to get paid from a taxpayer’s property. It is really that simple.
If the IRS has recently filed a Tax Lien against you, then you have the right to a hearing. Contact me today if you would like to discus your options: