What is the nature and extent of a tax lien under Sec. 219 of the NIRC?

• A. It arises when the taxpayer pays late and attaches to all property
• B. It arises when the taxpayer neglects or refuses to pay after demand and attaches to all property and rights; valid against third parties upon filing in the Register of Deeds
• C. It arises upon assessment and attaches only to real property
• D. It arises after a court order and attaches to wages

Answer: (B)

The main idea is that a tax lien under Sec. 219 of the NIRC springs from nonpayment after demand. When the taxpayer neglects or refuses to pay after such a demand, the government gains a lien on all property and rights of the taxpayer in its favor. This lien is broad: it covers both real and personal property and even intangible rights, not just real estate.

To protect against third-party claims, the lien becomes valid against others once a notice is filed in the Register of Deeds, giving public notice of the government’s claim. It’s not triggered by a court order, and it doesn’t apply only to wages; it attaches to all property and rights and is enforceable against third parties after filing.

So, the correct understanding is: nonpayment after demand creates a government lien on all of the taxpayer’s property and rights, and filing in the Register of Deeds makes that lien effective against third parties.