Ohio State Tax Lien on Credit Report

Jill Bridges
Expert Contributor
Last Updated:
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  • The Ohio state taxing authority has the ability to place a lien on your property in order to collect back taxes.
  • Liens appear on your credit report and stay there until the lien has been removed.
  • If you have a lien on your credit report, it can interfere with your ability to get a loan and your overall financial security.

If you live in Ohio and owe taxes, a tax lien can be filed to collect the outstanding back taxes. Liens were created to give the government the right to claim your property if you don’t pay your taxes, When a tax lien is filed, it becomes public record, which means that credit reporting agencies can see it.

Find out more about tax liens and tax levies in the state of Ohio, how these can impact your credit, and what steps you can take to free yourself from back taxes and get a clean slate.

What Is a Tax Lien?

A tax lien is placed on an individual or a business when they don’t pay their owed taxes. This is done to protect the government’s claim to your property, ensuring it gets your money, property, or assets over other creditors.

A tax lien will remain on your credit report until the obligation is repaid or the statute of limitations on the debt is up.

The IRS tax lien process is as follows:

Ohio State Tax Lien on Credit Report

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How Much Tax Debt Do You Owe?

  1. A tax amount owed through your tax return goes unpaid.
  2. A tax bill is sent to your address.
  3. The amount is paid in full or a tax lien is filed.

What Is the Impact of a Tax Lien?

Once the tax lien is processed, it will show up on your credit report. While the government doesn’t directly report tax liens to credit reporting agencies, these agencies actively seek tax liens and other public records to include on your report.

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A tax lien, as well as other judgments or public records, can impact your ability to get credit cards, loans, or a mortgage in the future. It makes you look like a financial liability to a potential lender.

Unlike other types of collections accounts, tax liens aren’t required by law to be removed from your report after a specified period of time.

How Do I Remove a Lien in Ohio?

If you become aware of an Ohio state tax lien against you, you can take the following steps to resolve it:

  • Contact the Ohio Attorney General’s office to see what amount of back taxes you owe to the State of Ohio.
  • Consult an attorney to explore your legal options.
  • Arrange a payment plan with the Attorney General’s office and pay any associated fees or court costs.
  • Once your back taxes have been repaid, the Attorney General’s office will send you a notice that you’ve satisfied your back taxes.
  • Verify with the Clerk of Courts office that your case file has been modified to reflect the paid back taxes.
  • Notify the three credit reporting agencies that you’ve satisfied the back taxes.

How Does a Tax Lien Affect Me?

A tax lien affects you in several ways:

  • Assets: If a lien isn’t repaid, the state may move forward to collect the debt through your current or future assets.
  • Credit: A tax lien remains on your credit report until it’s repaid or otherwise removed, which impacts your credit score and makes it more difficult to access credit.
  • Business: If you own a business, a tax lien for your personal taxes can put your business assets at risk as well.
  • Bankruptcy: Other than a few rare instances, bankruptcy won’t clear your back taxes.

Tax Lien Process

The state of Ohio follows a specific process before filing a tax lien:

  1. The state notices that you have unpaid back taxes.
  2. A tax bill is sent to your address notifying you of the delinquent back tax amount and requesting payment.
  3. If don’t respond to this notice, you will be sent a Notice of Federal Tax Lien and then a state tax lien notice.

Tax Lien vs. Levy

A tax levy is different than a tax lien. A tax lien means that the state tax authority has the right to seize your property if you don’t pay your back taxes, but at this point, you still have time to make arrangements. With a tax levy, the state forcibly seize your assets automatically. This may be in the form of wage garnishment, seizure of bank accounts, or collections against your assets. Like a lien, however, a levy will begin with a series of notices from the State of Ohio.

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What Types of Tax Levies Exist?

The state can choose from several different types of levies in its efforts to collect your outstanding back taxes. Here are a few examples:

  •  Wage garnishment. Wage garnishment is when the IRS contacts your employer and requests a certain percentage of your pay be garnished to pay your back taxes.
  • Bank levy. A bank levy is when the IRS contacts your bank and puts a hold on your funds until your back taxes is paid.
  • Property seizure. Property seizure is when the IRS has the authority to seize any assets in your name.
  • Asset seizure. In addition to property seizure, the IRS can also seize retirement accounts, dividends, life insurance, licenses, and other accounts.

How Can I Prevent a Tax Levy?

You can prevent a tax levy in several ways:

  • Pay your obligation in full.
  • Arrange an installment agreement.
  • Demonstrate undue financial hardship.
  • File an Offer in Compromise.
  • Negotiate a release of the levy.

If you’re having trouble with the Ohio state tax liens or levies, it’s best to consult an experienced and qualified tax attorney. Dealing with the state and getting tax liens removed can be a challenge, but a tax attorney can offer expert guidance and solutions to help the process go smoothly and ensure the best possible outcome for your case.

Fortunately, Solvable is here to help. We can get you in contact with expert tax attorneys and back tax assistance professionals who can find the best solution to your back taxes and help you get your tax liens withdrawn. Contact us today to see what we can do for you!


Jill Bridges
Expert Contributor
Last Updated: