A lien is a legal document that, when filed, allows the right to keep possession of property belonging to another person until a debt owed by that person is discharged. A tax lien is filed when an individual or business entity owes the Federal Government or State Tax Authority money due for unpaid taxes. The Internal Revenue Service will issue form 668-Y, Notice of Lien Filing - State Liens will vary from State-to-State. Liens are public record and filed in the respective county in which the individual or business entity resides and processed by the county recorder. Liens will attach to assets owned by the individual and/or business that is associated with the Taxpayer's Identification Number i.e. Social Security Number and/or Employer Identification Number. Liens can seriously impact your credit score and disqualify you from obtaining loans, credit, and is some cases as job. The tax lien will remain in place until the outstanding liability is paid in full, or the lien released.