Nebraska State Tax Lien Checklist
A state tax lien is a legal claim that Nebraska places on your property when you owe unpaid state taxes. It gives the state a legal right to your assets, including real estate, vehicles, and bank accounts, to collect the debt.
This is one of the most serious enforcement actions the state can take. Understanding what a lien means and how it works is critical because it affects your ability to borrow money and your ability to sell property.
What This Issue Means
A state tax lien is a legal notice asserting that Nebraska has a claim on your property due to unpaid taxes. The lien does not mean the state has seized your property yet, but establishes a formal claim asserting its right to collect from you.
Two types of liens exist under Nebraska law: a statutory lien arises automatically at the date of assessment. It lasts three years if not filed publicly, while a filed notice of lien is recorded with the Secretary of State or county register of deeds and extends the lien to ten years.
The filed lien can be extended indefinitely by filing continuation statements every ten years before expiration, and it remains in effect until the tax debt is paid in full or until the lien expires under statutory conditions.
Why the State Issued This or Requires This
Nebraska files a tax lien when a taxpayer has an unpaid tax liability that has not been resolved through normal collection efforts. Typical triggers include failure to pay taxes after a notice of tax due has been issued, failure to respond to collection notices, or failure to meet agreed payment deadlines.
What Happens If This Is Ignored
Unaddressed state tax liens allow the state to escalate enforcement actions significantly through wage garnishment, bank account levies, or property seizure and sale. A lien and wage garnishment are independent collection actions under Nebraska law, meaning the Nebraska
Department of Revenue can pursue wage garnishment regardless of whether a lien has been filed.
The debt continues to accrue interest and penalties, increasing the total amount you owe. Liens are public records filed with government offices and may affect your ability to obtain loans, refinance mortgages, or secure favorable interest rates through channels other than credit reporting.
What This Does NOT Mean
A tax lien does not mean the state has already seized your property or frozen your bank accounts. Criminal charges have not been filed against you, and you are not in immediate legal jeopardy from a lien filing alone.
Tax liens do not appear on credit reports maintained by Equifax, Experian, or TransUnion. Since
April 2018, the three major credit bureaus have removed all tax liens from consumer credit reports.
Checklist: What to Do After Receiving Notice of a State
Tax Lien
Follow these steps to understand the lien and explore your options
1. Locate and review the lien notice you received, writing down the date received, the tax year or period involved, the amount claimed, and any case or notice number provided.
2. Verify the debt amount and tax year by contacting the Nebraska Department of Revenue at 800-742-7474 for Nebraska and Iowa residents or 402-471-5729 to confirm the exact amount owed and request itemization of all charges.
3. Review your tax return or records for that year, gathering your original tax return, supporting documents, and payment records related to the tax year in question.
4. Determine the current status of any previous payments or agreements, confirming whether those obligations were completed or remain active.
5. Research your state’s current enforcement options by visiting the Nebraska Department of Revenue website or contacting the department directly to learn what collection tools
are available.
6. Determine whether you can pay the debt in full, as paying the entire debt will result in the state filing a termination statement to release the lien.
7. Explore payment options by contacting the Nebraska Department of Revenue to inquire about installment agreements, noting that any delinquency can be paid over ninety days without a written agreement. Still, arrangements exceeding ninety days must be in writing.
8. Request a copy of the filed lien document so you can review the exact wording and filing date from the state.
9. Check whether you have grounds to dispute the lien if you believe the debt was paid, incorrectly assessed, or filed in error.
10. Document all communication with the state by keeping copies of letters, emails, and notes from phone calls regarding your debt and payment arrangements.
11. Meet any payment deadlines established under your payment plan or installment arrangement by marking payment dates clearly.
What Happens After This Is Completed
Your arranged payment plan with the state begins once you complete these steps, and you will make payments according to the agreed schedule. The lien remains in place while you make payments and is released only after the entire debt is paid in full.
Processing a lien release takes time after full payment because the state must file a termination statement. Additional collection methods may proceed if you are unable to pay or reach an agreement.
Common Mistakes to Avoid
Understand common errors that can worsen your situation or delay resolution
- Ignoring the lien notice allows the debt to grow and increases the likelihood of wage
garnishment or bank levy.
- Failing to verify the debt amount can lead to overpayment or underpayment, which
complicates resolution.
- Missing payment deadlines under a payment plan can result in default and escalation of
enforcement action.
- Requesting a lien release after paying is essential because the lien does not
automatically disappear from public records.
- Failing to keep documentation of payments makes disputes about whether a payment
was made difficult to resolve.
- Sending payments with a reference number or case ID ensures proper crediting to your
account.
Frequently Asked Questions
How long does a tax lien stay on my record?
A Nebraska state tax lien remains in effect based on specific statutory timeframes: an unfiled statutory lien lasts three years from assessment or one year after a payment agreement expires, whichever is later. A filed lien lasts ten years from the date of recording and can be extended by filing continuation statements for additional consecutive ten-year periods. The lien expires and becomes unenforceable if the Department fails to file a continuation statement before the ten-year period expires.
Will a tax lien appear on my credit report?
Equifax, Experian, and TransUnion no longer include tax liens on consumer credit reports since
April 2018. Liens remain public records and can affect borrowing ability through other channels, despite not directly affecting credit scores.
What is the difference between a tax lien and a tax levy?
A lien is a notice of claim filed against your property, while a levy is an actual seizure of your assets to pay the debt. These are independent collection tools under Nebraska law, and a lien often precedes a levy.
If I enter into a payment plan, will the lien be released immediately?
The lien remains in place while you make payments under the plan and is released only after the entire debt is paid in full.
What if the lien was filed by mistake?
Contact the Nebraska Department of Revenue at 800-742-7474 or 402-471-5729 to request a review with documentation supporting your claim.
Final Considerations
A state tax lien is a serious enforcement action that affects your finances and ability to buy or sell property. Taking prompt action through full payment, arranging a payment plan, or disputing the lien can help you respond effectively and move toward resolution.
Facing State Enforcement or Payroll Tax Issues?
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.
We help with
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
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