Today’s accounting moment: Practical Application of Income Tax Liens

Danny Abel tax lien

Lien on Me: Virtual Debtors Prisons, The Practical Effects of Tax Liens
and Proposals for Reform
Volume 49 of University of Louisville Law Review
Danshera Cords


Imagine having an unenforceable debt that shows up on your credit report forever, for example a tax lien that was filed with respect to a tax liability on a tax year for which the statute of limitations for collecting the tax liability has now expired. Imagine next that a professional licensing organization (such as the state bar for a lawyer or a self-regulating organization (SRO) for a security broker/dealer) requires about you demonstrate “financial responsibility” or that a prospective employer looks at your credit report and that negative items, including tax liens, could prevent you from obtaining the license or employment.

Hat Tip: Paul Caron and the gang at the Tax Professor Blog