Section 6321 of the Internal Revenue Code

Section 6321 of the Internal Revenue Code states that if a person owes unpaid taxes, the government can place a lien on their property, including real estate and personal assets. This legal claim ensures the IRS has a secure interest in the taxpayer’s property to ensure the owed taxes are paid. The lien becomes effective when the IRS records a public notice called a notice of federal tax lien, alerting others that the government has a legal right to the property as security for the tax debt.