Property tax liens trump all other mortgages or liens placed on a property. Once the government assesses a tax, the amount due constitutes a lien on the owner’s property, whether real or personal. Federal law exempts some forms of property from the tax lien. Unemployment benefits, trade books and tools, workers’ compensation, judgments for support of minor children, minimum amounts of wages and salary, personal effects, furniture, fuel, and provisions are all exempt. Local governments also can assess liens against real estate for failure to pay real estate taxes. After some period, the real estate might be sold to satisfy the tax amounts owing. • Internal Revenue Service Lien: A federal tax lien is a legal claim placed on your property by the U.S. government wherein you fail to pay a tax debt. The lien protects the government’s interest in all of your property, including real estate, personal property, and financial assets. A federal tax lien is established after the IRS records the outstanding balance (liability assessment), sends you a bill with the amount you owe (notice and demand for payment), and you fail or refuse to pay the full debt in time. The IRS usually utilizes this lien if you’re unemployed, self-employed, or sporadically unemployed and the IRS would have trouble attaching your income. • Mechanic’s Lien: A common nonconsensual lien on real estate is the “mechanic’s lien,” which can be obtained by one who furnishes labor, services, or materials to improve real estate. Mechanic’s liens are statutory, and the statute must be carefully followed. An automobile mechanic
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