When your taxes are not paid, tax authorities can establish a lien against all of your assets, especially real estate. This gives the tax authorities the legal right to collect taxes from the sale of your assets.
The lien can be against you, your spouse, or your company. A lien against your company would seize your accounts receivable.
Tax liens filed against you also show up on your credit report. With a tax lien on your record, you may not be able to get a loan of any sort, such as a car loan or business financing, unless at a very high rate of interest. You may even be unable to open new bank accounts.
