Maine State Tax Lien Checklist: Understanding State
Enforcement
Introduction
A state tax lien is a legal claim against your property or assets when you owe unpaid Maine state taxes. The Maine Revenue Services files this enforcement action after standard billing efforts fail to resolve the debt. Liens attach to real estate and personal property, creating a public record that notifies creditors and lenders of the state’s legal right to your assets.
Understanding what triggers a lien and what steps to take helps you resolve the debt and protect your financial standing.
What This Issue Means
A Maine state tax lien represents formal enforcement action for unpaid state income, sales, or other state tax obligations. The lien arises when the assessment becomes final, and no further administrative review is available under Maine law. Once filed with the county registry of deeds or the Secretary of State, the lien becomes a public record with the same force and priority as a judgment lien. The lien does not immediately seize your property but secures the state’s interest until the debt is paid.
Why the State Issued This or Requires This
Maine law under Title 36, Section 175-A authorizes the State Tax Assessor to file a tax lien when unpaid tax liability remains after the assessment becomes final. The lien protects the state’s ability to collect owed taxes and provides legal notice to third parties. Common triggers include failure to pay after multiple notices, ignoring payment plans, or missing agreed deadlines. The lien continues for 10 years from the date of recording unless sooner released or discharged, with possible extensions for additional 10-year periods.
What Happens If This Is Ignored
Failing to address a tax lien allows the state to pursue additional collection actions, including wage garnishment, bank account levies, or property seizure. The public record of the lien remains accessible to lenders and creditors even though tax liens no longer appear on consumer credit reports. Penalties and interest continue to accumulate on the unpaid debt. The longer the lien remains unresolved, the more difficult it becomes to refinance property, obtain new credit, or sell assets with a clear title.
Step-by-Step Checklist: Resolving Your Tax Lien
Step 1: Locate the Lien Notice
Find the official notice from Maine Revenue Services that explains the lien filing, tax years involved, and total amount owed, including penalties and interest.
Step 2: Verify the Debt Amount
Review your tax records, prior notices, and the lien document to confirm the exact amount of unpaid taxes, penalties, and interest listed by the state.
Step 3: Contact Maine Revenue Services
Reach out to Income Tax Collections and Liens at 207-621-4300 or the Compliance Division at
207-624-9595 to discuss your specific situation and available resolution options.
Step 4: Gather Supporting Documents
Collect all correspondence from the state, prior tax returns, proof of any payments made, and documentation of filing issues or disputes related to the assessment.
Step 5: Explore Payment Options
Obtain information about full payment, installment agreements, or other settlement options available through Maine Revenue Services based on your financial circumstances.
Step 6: Establish a Payment Plan
Request a formal payment arrangement if you cannot pay the full amount immediately, and obtain written confirmation of the terms and payment schedule from the state.
Step 7: Make Payments on Time
Make timely payments in accordance with the established agreement to avoid plan cancellation and renewed enforcement actions, such as levies or wage garnishments.
Step 8: Request a Lien Release
After paying the debt in full, request that the state issue a certificate of release under Title 36,
Section 175-A, which the assessor is required to provide.
- Ignoring the lien notice: Failing to respond or take action allows collection efforts to
- Missing agreed payment deadlines: Defaulting on a payment plan results in
- Paying without requesting a release: Making a payment without confirming that the
- Assuming the lien will disappear: Tax liens remain on public records until the state
- Not keeping payment records: Failure to obtain written confirmation of payments made
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Step 9: Verify Release Filing
Confirm that Maine Revenue Services has filed the formal release with the registry of deeds so the lien no longer appears in public records affecting your property.
Common Mistakes to Avoid escalate and penalties to grow. The lien remains on public records until formally released by the state. cancellation of the plan and renewed enforcement actions. The state may proceed with wage garnishment or bank levy after plan failure. state will file a certificate of release may leave the lien in public records. Always verify that the release has been recorded with the registry of deeds. files a formal release. The 10-year duration does not automatically remove the public record without state action. can complicate disputes. Save all receipts, canceled checks, and correspondence regarding payments and agreements.
Frequently Asked Questions
Can I Sell My Home With a Tax Lien Against It?
A lien must typically be paid off at the time of sale before property can transfer to a new owner.
The lien serves as a claim against the sale proceeds, and your title company will ensure it is satisfied before closing.
How Long Does a Maine Tax Lien Last?
Maine law provides that state tax liens remain in effect for 10 years from the date of recording, unless released or discharged sooner. The state may extend the lien for an additional 10-year period by filing an extension within the original period.
Does a Tax Lien Affect My Credit Score?
Tax liens no longer appear on consumer credit reports since April 2018, when major credit bureaus removed them. However, liens remain public records accessible through county registries and may be discovered by lenders during due diligence.
What Is the Difference Between a Lien and a Levy?
A lien is a claim against your property recorded in public records to secure payment. A levy is the state’s action to seize and take property or funds, such as bank accounts or wages, to satisfy the debt.
Will the Lien Be Removed Automatically After Payment?
Maine law requires the State Tax Assessor to issue a certificate of release upon satisfaction of the liability. You must request the release and verify it has been recorded with the registry of deeds.
Closing
A Maine tax lien is a serious enforcement action that requires prompt attention and resolution.
Understanding your options and taking action to address the debt helps you regain financial stability. Contact Maine Revenue Services to discuss payment plans, settlement options, or full payment arrangements that work for your situation.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
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