A tax liens is a is a claim tax collectors use as a security for tax debt. The lien attaches to the title of the property preventing you from selling or refinancing said property. The lien comes as a reaction to unpaid tax debts. The lien will remain on the title of the property until the debt is paid off. This property can be land, homes or even your truck.
One thing to understand about liens is that they may survive chapter 7 or 13 bankruptcy. There is significant cost and time that goes into the IRS creating a lien. Rather than go through the process, they’ll likely agree to an installment agreement wherein you make payments in a set amount of time in consideration with your financial situation.
As long as you make the payments on time, the IRS won’t file the tax lien. As a trucker, you want to avoid a tax lien because it may take away a source of income. Not only that, but lien’s can have a devastating effect on your credit score for up to seven years after you pay off your tax debt.