Final answer:
A tax lien is a claim made by the government on a property due to unpaid taxes. It is a matter of public record and can affect the taxpayer's ability to obtain a loan. It cannot be removed by paying 20% of the balance owed and allows the IRS to take payments from the taxpayer's bank account.
Step-by-step explanation:
A tax lien is a claim made by the government on a property due to unpaid taxes. It is a matter of public record, meaning that it is made available to the public. This allows potential creditors or interested parties to be aware of the debt when considering lending money or purchasing the property.
A tax lien does affect the taxpayer's ability to obtain a loan because it indicates that the taxpayer has outstanding debts. Lenders may consider this as a risk and may be less likely to approve a loan. However, it is not impossible to obtain a loan with a tax lien; it may just make the process more challenging.
A tax lien cannot be removed by paying 20% of the balance owed. The amount required to remove a tax lien varies depending on the specific circumstances and the amount owed. To remove a tax lien, the taxpayer typically needs to pay the full balance owed, including any interest or penalties.
Lastly, a tax lien allows the government, such as the IRS, to take payments from the taxpayer's bank account in order to satisfy the unpaid taxes. This is done through a process called a levy, where the government can seize funds from the bank account to fulfill the tax debt.