What are the consequences of having an IRS tax lien?

Having an IRS tax lien can have serious consequences on an individual or business. Firstly, it negatively impacts one's credit score, making it harder to obtain loans or credit in the future. The lien becomes a public record, which potential creditors, employers, and landlords may access, causing reputational damage. Furthermore, the IRS can seize assets or garnish wages to satisfy the owed tax debt. The lien also affects the sale or transfer of any property, hindering one's ability to sell or refinance assets. Additionally, obtaining a passport may become challenging or impossible. Lastly, the lien remains in place until the tax debt is fully paid or a suitable resolution is reached with the IRS. It is crucial to address the lien promptly to prevent further financial and legal complications.