Tax debt is a state where a taxpayer finds he or she owes money on their taxes to the government. It may be federal, state, county or municipal taxes that are in arrears and past due. Tax debt, like any other type of debt, is not a desirable position to be in. The situation is serious because the government officials act aggressively to obtain their money. In fact, the government can put into place various types of levies or take out a lien. In the instance of tax debt, the government may garnish your wages, seize your assets including your bank account and Social Security. They may place a lien against any real or personal property. In some instance, the government will not only place a lien on your home, they will also sell it to a private party. As a result, tax debt needs to be resolved as soon as possible. If you receive a letter from the government noting the tax problem, do not ignore it. You need to take immediate action. Contact a lawyer or the tax office. Deal with the situation before the tax problem becomes a financial nightmare.