Federal or state tax liens can really make your life miserable! When your taxes are not paid the IRS and California establish liens against all of your assets (especially real estate). This gives IRS and California the legal right to collect taxes from the sale of your assets, which includes just about everything you own.
The lien can be against you, your spouse, or your company. A lien against your company would seize your accounts receivables. At this point everything you own is just one short step away from becoming the property of the United States Government or the State of California.
Liens filed against you by the IRS or California also show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. The banks don't want the extra work when IRS or California comes in to take your money.
With a tax lien on your record you can't get a reasonable loan to purchase a car. Think about paying 18-22% interest on a car that is already too expensive. You definitely cannot buy or sell any Real Estate. The list is endless.
