Paying the tax balance in full can stop other collection actions.
When you don’t pay your taxes, the IRS can file a public document with the local and/or state authorities.
- When the NFTL is filed, it alerts creditors you owe the government.
- The NFTL secures the government’s claim to your current and future property and assets until the balance is paid in full.
- While NFTLs no longer appear on credit reports, they may still affect your ability to get credit if a potential creditor uses other resources, such as public records, to discover the NFTL.
If the balance goes unpaid, the IRS can take money from your bank account or wages (called a levy) or take property to pay the tax debt (called a seizure).
This may include digital assets, find out more on digital assets and how this may apply to you.
