Final answer:
The IRS can place a lien on a property if the owner fails to pay their income taxes. This is to ensure the payment of the tax debt. Property taxes, managed by local governments, are based on property values and can be controversial because they are highly visible and collected in lump sums.
Step-by-step explanation:
If a property owner does not pay their income taxes, the Internal Revenue Service (IRS) may place a lien on their property. A lien is a legal claim against property for the payment of a debt or obligation. In this case, the lien is for unpaid income taxes that the property owner owes to the federal government. Property taxes, on the other hand, are usually imposed by local or municipal governments based on the property's value. While property taxes are progressive and affect property ownership predominantly among higher income groups, income taxes are levied directly on the income earned by a person or firm.
Property taxes can be problematic for local governments since they are collected in lump sums and are highly visible and unpopular. They also fluctuate with the economic health of an area. To combat tax evasion in general, the IRS needs to enforce tax laws and may place liens on properties to recover unpaid taxes. The reliance of local governments on property tax revenue has various drawbacks, including disparities in payments based on area economic health and exempt properties owned by nonprofit organizations.