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- Last Updated on January 30, 2013
What is a tax lien?
A judgment filed by the Tax Commission against a taxpayer’s real or personal property when they neglect or refuse to pay a Utah tax balance.
A lien is a public document that lists the delinquent taxpayer's personal or business name, the tax type and amount owed at the time the lien is filed. A lien may be used by the Tax Commission to seize and sell the taxpayer’s real and personal property if necessary to pay the delinquent tax balance.
If a person or business has a payment agreement with the Tax Commission, a lien may be filed to secure that debt. If the payments are made as agreed, no action will be taken on the lien.
How will I know if I have a lien?
When the lien is filed, the Tax Commission will send a certified Notice of Lien to the address listed on your account.
How do I remove a lien?
There are two ways to have a lien withdrawn:
- Full payment of the tax, penalty and accrued interest. When the outstanding tax, penalty and interest have been paid, the lien will be withdrawn.
- Prove to the Tax Commission that the lien was issued in error.
Notice that the lien existed will still be available on the public record and will be listed as set aside.
How does a tax lien affect my credit rating?
Credit reporting agencies have access to the county records and state liens are shown on credit reports. A state tax lien may prevent a person from selling or refinancing property and may adversely affect other attempts to acquire credit. Even once the tax lien is withdrawn, it will still be reflected on credit reports as set aside.
When a lien has been withdrawn, the Tax Commission will send the taxpayer a Notice to Credit Bureaus. The taxpayer should send a copy of this notice to the credit bureau(s).
For more information about liens, contact the Tax Commission at 801-297-7703 or 1-800-662-4335 ext. 7703.