A tax lien is easy to understand if you break it down as is usually the first major enforcement used by taxing authorities (State or the IRS). A lien in general is a claim or security of interest placed on personal property to secure the repayment of debt. Therefore, a tax lien is a lien imposed by Federal or state law to secure payment of back taxes. A Tax Lien can be put on your personal property and is communicated to the world via the "Clerks" office or state record system. Typically, the IRS or State will notify you first of unpaid taxes. If you decide not to act (depends on state as procedures vary) within 10 days, then a tax lien will be issued on your personal property. This issuance notifies government public records.

What Are Your Options?

Option 1: Do Nothing and Wait.
A tax lien generally cannot be enforced after 10 years but during those 10 years the IRS or State can take action by seizing property (banks, house, etc). Furthermore, a tax lien stays on your credit report for a very long time and you don't want to damage your credit. Option 1 is not recommended.

Option 2: Pay The Lien Off
After 30 days, the lien will be released/removed. Easier said than done. Many people cannot pay the amount without experiencing final struggle. If you cannot, you should look to work with professionals (tax attorneys and CPAs) as most individuals face this problem. YOU CANNOT sell your home or personal property until you deal with the Tax lien.

Option 3: Set Up A Payment Plan With The State or IRS
Working with specialists makes it easy and if you setup a payment plan or offer in compromise things can become under control. Many Tax Debt Reduction companies charge you only fees if they save you thousands of dollars so its a win, win for you.