Small Business Must Be Current On All 3 Levels of Taxes (Fed, State, Municipal) It’s very simple: If a business or individual becomes delinquent on taxes, a lien will be issued against them by whatever tax authority they have failed to pay. Regardless of being on a federal, state, or municipal level, a tax lien still accomplishes the same thing: it prohibits that individual or business from obtaining any sort of credit for any reason. A tax lien indicates a serious delinquency in one’s obligations from which any sensible lender will shy away.
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