Many Atlanta residents may hear the phrase "tax lien" and wonder what, exactly, that means. A tax lien is filed against an individual who owes taxes. Those taxes could be anything: income tax and property tax are the most common, but other taxes can force a lien as well. Your county of residence (or business, depending on the situation) will receive the lien as well.

When an individual has a tax lien placed on them, it can turn their financial situation upside down. In most cases your credit rating will take a severe hit, and a lien more or less prevents the individual from obtaining a loan, purchasing property or using credit in general. Lenders will be unwilling to deal with someone who has a lien on them, because the individual is seen as a risk. Even if you try to sell property while under a lien, you will be unable to transfer the title.

Tax liens are very serious and the individuals dealing with them need to seek legal help as soon as possible to deal with the situation. Ignoring it will not make the lien disappear. In certain situations with the right circumstances, a tax lien can be discharged without the individual having to pay the taxes that are owed.

Katt Williams is a little too familiar with tax liens at this point, as the famed comedian just paid off one before having another one attached to his name. He paid $284,000 to clear a tax lien resulting from a 2007 case. Now, though, Williams owes another $4 million to the IRS for back taxes resulting from a 2012 case.

Source: The Inquisitr, "Katt Williams Pays $284,000 In Back Taxes, Still Owes $4 Million," James Johnson, Feb. 11, 2013