What is a tax lien?
A tax lien is 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 a delinquent taxpayer's personal or business name, the tax type and amount owed at the time the lien is filed. The Tax Commission may use a lien to seize and sell a taxpayer’s real and personal property, if necessary, to pay a tax balance.
If a person or business has a payment agreement with the Tax Commission, we may file a lien to secure that debt. If the payments are made as agreed, we will not take action on the lien.
How will I know if I have a lien?
If we file a lien against you, we 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There are two ways to have a lien withdrawn:
- Pay the full balance of the tax, penalty and 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 When the outstanding tax, penalty and interest have been paid, the lien will be withdrawn.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.
Even after a lien is withdawn it will still be listed in public records as set aside.
How does a tax lien affect my credit rating?
Credit reporting agencies have access to county records and state liens are shown on credit reports. A state tax lien may prevent you from selling or refinancing property and can make it difficult to acquire credit. A lien will still appear on your credit reports (as set aside) even after it is withdrawn.
When a lien against you is withdrawn, the Tax Commission will send you a Notice to Credit Bureaus. 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.