Maryland Notice of State Tax Lien Filing Checklist
A notice of tax lien from the Comptroller of Maryland means the state has formally recorded a legal claim against your property or assets because of unpaid state taxes. This notice requires serious attention because a tax lien creates a legal hold on what you own, which can affect your ability to sell property, refinance a home, or access credit.
What This Notice Means
The notice of tax lien tells you that the Comptroller of Maryland has filed a formal legal claim in the circuit court public record showing that you owe delinquent taxes, such as unpaid state income tax, sales tax, or another state tax debt. This lien is a public notice that alerts creditors, lenders, and potential buyers that Maryland has a financial interest in your property until the debt is paid.
A tax lien is one of the state’s collection tools. It does not seize your assets immediately, but it creates a barrier to selling or refinancing property and signals to others that you have an unresolved tax obligation.
Why the State Sent This Notice
The Comptroller of Maryland sends a notice of tax lien after you have missed multiple payment deadlines or failed to respond to earlier collection notices regarding delinquent taxes. Filing the lien creates a legal claim that will show up in land records at the circuit court where your property is located.
What Happens If You Ignore This Notice
Failure to respond to or address the tax debt after receiving a legal notice allows the Comptroller of Maryland to take additional collection actions under Maryland Rules. The state may pursue wage garnishment using forms such as Form 668-W, which means a portion of your paycheck is automatically sent to the tax authority through employee payroll deductions, or place a levy on your bank accounts to freeze funds until the debt is satisfied.
What This Notice Does Not Mean
Receiving a notice of tax lien does not mean your home has been foreclosed or that your bank accounts have already been frozen. Under Maryland income tax laws and statutes enacted by the Maryland Legislature, a state tax lien filed by the Comptroller creates a claim on property but does not, by itself, authorize foreclosure or seizure of a personal residence.
Checklist: What to Do After Receiving This Notice
Step 1: Locate and read the notice carefully
Find the notice you received from the Comptroller of Maryland and read the entire document, including all dates, amounts, and instructions. Look for the date the lien was filed, the amount of tax owed, the case number assigned to your lien, the tax type, such as income or sales tax, and any contact information provided.
Step 2: Verify the debt amount and tax type
Write down the exact amount of tax the state says you owe, and note what type of tax is listed in the assessment records. Verify that the tax year or period matches what you believe you owe, and make a note of your reason if the amount seems wrong.
Step 3: Review your own tax records
Gather your tax returns, payment receipts, and correspondence with the state for the years listed on the notice. Check whether you filed a return for the tax year mentioned and whether you made any payments toward this debt.
Step 4: Contact the Comptroller of Maryland
Call or write the Comptroller of Maryland at 1-800-MDTAXES to confirm the details of your tax debt. Ask for a current account balance, what the lien is based on, whether any payments you made have been credited, and request written confirmation by mail if possible.
Step 5: Determine whether you can pay the full amount
Look at your current financial situation and determine whether you can pay the entire amount owed in full. If yes, ask the state for payment instructions and available online payment options.
Step 6: If you cannot pay in full, ask about payment arrangements
Contact the Comptroller of Maryland and ask whether you can set up a payment plan, what options are available, such as monthly installments, and what paperwork is needed. Setting up this arrangement does not release the lien, which remains in land records until the debt is paid in full.
Step 7: Ask about a lien release
After paying the tax debt in full, request confirmation that the Comptroller has released the lien and verify this has occurred in the land records at the circuit court where the lien was filed. Under Maryland Tax-General Code Section 13-806, the lien continues until satisfied or released by the tax collector.
Step 8: If you dispute the debt, understand the appeals process
You can file a formal written appeal within 30 days of an assessment or refund denial through the Comptroller's MyCOMConnect website or by mail to Comptroller of Maryland, Attn: Hearings & Appeals, 7 St. Paul Street, Room 210, Baltimore, Maryland 21202. If filed late for an assessment, you lose the right to a hearing but may submit documents for review with a final, non-appealable decision.
Late appeals of refund denials become final and non-appealable with no hearing or review. Disputing the debt does not automatically stop the lien, but filing a formal dispute may delay collection action while the state reviews your claim.
Step 9: Keep all documentation
Save every piece of paper related to this tax debt and your communications with the state, including copies of notices, payment receipts, emails, and notes from phone calls. These documents protect you if there is a question later about what you paid or what you were told.
Step 10: Respond to any future notices promptly
Open all additional notices or letters immediately and read them carefully, as each notice may contain new deadlines or next steps. Contact the Comptroller and ask for clarification if you do not understand a notice, rather than assuming what it means.
Understanding Wage Liens and Employee Payroll Deductions
The Comptroller may enforce collection through a state tax wage lien, which allows continuous attachment of wages until the balance is paid. Employee payroll deductions continue until the debt is satisfied, though Maryland law protects an exempt amount of your income from garnishment to ensure you can meet basic living expenses. Federal law and state regulations establish this protected threshold that creditors cannot touch, which varies based on your income and circumstances.
How Long a Tax Lien Remains on Your Record
Maryland Tax-General Code Section 13-806 clearly states that tax liens continue until the lien is satisfied or released by the tax collector, or 20 years after the date of assessment under the statute of limitations. The lien will remain in the circuit court land records until formally released by the Comptroller, even after the debt is paid.
Receiving a notice of tax lien is serious, but it is not an emergency that requires panic. By understanding what the notice means, gathering your records, contacting the Comptroller, and exploring your options, you can take control of the situation.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
