A lien is defined as a charge on real or personal property for the satisfaction of debt or duty. The Department of Revenue files a lien with the county Prothonotary Office when an individual or business has unpaid delinquent taxes. When a lien is filed, it becomes a matter of public record. The lien ensures the Commonwealth of Pennsylvania is listed as a priority creditor that must be paid before other financial transactions can take place (home sales, business transfer, obtaining a loan, etc.). The department files liens for all types of state taxes: corporation taxes, sales & use taxes, employer withholding taxes, personal income taxes, inheritance taxes, motor fuels taxes, realty transfer taxes and various other taxes.
How to Pay Off a Lien
The Pennsylvania Department of Revenue teaches taxpayers how to pay off a lien using myPATH.
A lien is removed when the department receives confirmation that the past-due liability has been resolved. The lien satisfaction process will start approximately 45 days after the resolution has occurred.
If there is a Department of Revenue lien filed against you or your business, and you want to resolve your tax liability, complete the Lien Payoff Request Form (REV-1038) [PDF].
A lien allows the department to pursue progressive tax enforcement strategies such as wage garnishment, sales tax and employer withholding citations, and administrative bank attachment.
The Pennsylvania Tax Lien Publication List is a resource that lists all state tax liens that the Department of Revenue files with county Prothonotary Offices when an individual or business has unpaid delinquent taxes. To access and search the list, visit myPATH and click on “Lien Publication” under the “Tax Compliance” tab on the homepage.
The Department of Revenue files liens for all types of state taxes, including Personal Income Tax, Sales and Use Tax, and Employer Withholding Tax, to name a few. The lien list identifies the original lien amounts for any certified tax lien filed against an individual and/or business. The current tax owed may differ from the amount listed on the lien list due to partial payments and/or additional interest and penalties. The list is updated monthly; therefore, a satisfied lien will still appear on the list until the next monthly update is published.
The department files liens in the county Prothonotary’s Office where the taxpayer resides or does business. Liens, along with most other court records, are public documents.
The Department of Revenue does not report lien information directly to the credit bureau agencies. However, the tax lien and the cancellation of the lien are considered public information that credit bureau agencies can obtain on their own. When a lien is satisfied, the department sends you a lien satisfaction notice. You can send a copy of the notice to credit bureau(s) requesting to modify or remove the lien from your credit report.
The Department of Revenue will mail taxpayers a Certified Copy of Lien letter to notify them that a lien has been filed with the County Prothonotary’s Office. The department also contracts with outside law firms, including Wong Fleming and Linebarger Goggan Blair & Sampson, for out-of-state lien enforcement. As a result, taxpayers may receive notices from law firms working for the Department regarding liens. If you have any questions about a notice or a lien, please contact the Department of Revenue’s Bureau of Compliance at 717-787-3911.