Q: When does a tax lien on real property expire in NY due to owed income tax?
I have a tax lien on my real property in New York State, which was placed due to owed income tax in 2013. I haven't had any communication from the state tax authority, nor have I made any payments or settlements. I'm concerned about the expiration of the lien, especially since selling could be complicated if it hasn't expired. Does the tax lien expire after 10 years, and what should I know about handling it?
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A:
In New York, a tax lien related to income tax does not automatically expire after 10 years. Under New York State Tax Law § 1141(b), the Department of Taxation and Finance may enforce a tax warrant for up to 20 years from the date it was docketed. This means that if a tax warrant was filed against your property in 2013, it may still be enforceable until 2033, unless it is paid, satisfied, or withdrawn.
During that 20-year period, the lien remains attached to your property, which can complicate or prevent a sale unless the debt is settled or otherwise resolved. Even if you haven’t received communication from the tax authority, the lien remains active and will appear in a title search. It is also possible for interest and penalties to continue accumulating over time.
If you're considering selling the property, it’s a good idea to request a payoff amount from the New York State Department of Taxation and Finance. This will help you understand the full amount owed and allow you to negotiate payment or resolution before the sale. Handling the issue proactively can help avoid last-minute obstacles and ensure a smoother closing process.
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