Silent Automatic Lien

AAA

DEFINITION of 'Silent Automatic Lien'

A lien that does not appear in any public record. This is a method used by the IRS to collect unpaid taxes when less dramatic measures, such as sending letters to the delinquent taxpayer, have failed. A silent automatic tax lien is one of two types of tax liens. The other is a federal tax lien, which is public.

Also known as an "automatic tax lien".

INVESTOPEDIA EXPLAINS 'Silent Automatic Lien'

There are four ways to get rid of a silent automatic lien: paying the taxes owed, declaring bankruptcy, negotiating an agreement with the IRS (called an Offer in Compromise) and waiting out the time limit for collections.

RELATED TERMS
  1. Clear Title

    Also known as "clean title," "just title," "good title" and "free ...
  2. Encumbrance

    A claim against a property by another party. Encumbrance usually ...
  3. Lien

    The legal right of a creditor to sell the collateral property ...
  4. Tax Lien

    A legal claim by a government entity against a noncompliant taxpayer's ...
  5. Tax Lien Certificate

    A certificate of claim against property that has a lien placed ...
  6. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
Related Articles
  1. How To Appeal Your IRS Audit
    Taxes

    How To Appeal Your IRS Audit

  2. Surviving The IRS Audit
    Taxes

    Surviving The IRS Audit

  3. When You Can't Pay Uncle Sam
    Options & Futures

    When You Can't Pay Uncle Sam

  4. Federal Tax Brackets
    Taxes

    Federal Tax Brackets

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center