Q. What are the statute of limitations on state and federal income tax liens?

—RON G., HONOLULU

A. You can wait out the federal government, but not the state of Hawai'i.

A tax lien is typically filed at the state Bureau of Conveyances when you are delinquent in paying taxes, in effect saying publicly that the government has a claim on some of your property.

A tax lien is considered a black mark on your financial records — it will be included on your credit reports and you may have a more difficult time getting a loan, renting a house or obtaining credit cards because of it. Some people may avoid doing business with you because of a lien.

In general, it's best to avoid having a lien filed against you, either by arranging a payment schedule with the state or federal government or by doing what's known as an "offer and compromise." In the latter, tax authorities agree to accept a lower payment if they believe the taxpayer won't be able to make a full payment no matter how long he or she is given.

But to answer your question, the federal government is a little more forgiving than the state. According to its IRS.Gov Web site, a federal tax lien is usually released after 10 years, although there are instances where the period can be extended.

If for some reason the IRS is tardy releasing your lien without any reason, you may sue the federal government for damages.

The state of Hawai'i doesn't provide such amnesty, perhaps because it has fewer people to keep track of compared to the IRS. Titin Liem, a spokeswoman for the state Department of Taxation, said there is no statute of limitations on its liens.

They remain on the books until the taxes are paid and the lien is released, she said.

You'll want to double check your situation with a tax professional to see if there's anything that can be done to avoid having a lien filed against you.

Do you have a question about personal finance, taxes or other money matters? Reach Akamai Money columnist Greg Wiles at 525-8088 or gwiles@honoluluadvertiser.com