Tax lien
Okay kiddo, imagine you have a piggy bank where you keep all of your money. And let's say you owe someone some money, but you don't have enough to pay them back right now.
Well, just like you might keep track of how much money you owe your friend, the government keeps track of the money people owe them in the form of taxes.
Now, if someone owes money on their taxes and they don't pay it back, the government can put something called a "tax lien" on their property. That means that if the person ever wants to sell their property or make any money from it, the government gets to take a certain amount of that money until the person pays back what they owe in taxes.
It's kind of like putting a lock on someone's piggy bank until they pay back their debt.
So, in summary, a tax lien is when the government puts a legal claim on someone's property because they owe money on their taxes and haven't paid it back yet. This might make it difficult for the person to sell their property or make any money from it until they've paid back what they owe.
Well, just like you might keep track of how much money you owe your friend, the government keeps track of the money people owe them in the form of taxes.
Now, if someone owes money on their taxes and they don't pay it back, the government can put something called a "tax lien" on their property. That means that if the person ever wants to sell their property or make any money from it, the government gets to take a certain amount of that money until the person pays back what they owe in taxes.
It's kind of like putting a lock on someone's piggy bank until they pay back their debt.
So, in summary, a tax lien is when the government puts a legal claim on someone's property because they owe money on their taxes and haven't paid it back yet. This might make it difficult for the person to sell their property or make any money from it until they've paid back what they owe.