Tax Lien Lawyers in Fargo

A "lien" in Fargo, North Dakota is a property right that a person or entity has in property owned by someone else, created by law, for the purpose of enforcing a debt. A lien gives its holder various rights in the property of another person, including the right to seize the proceeds of a sale of the property, and, if the debtor files for bankruptcy, the right to go to the front of the line among other creditors, making it more possible that the lien holder will collect something.

As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Fargo, North Dakota tax authorities, to collect taxes that the property-owner has failed to pay.

Of course, a tax lien in Fargo, North Dakota isn't worth much more than the paper it's printed on if the debtor doesn't own any property of value, on which a lien could be placed. Nonetheless, a tax lien applies to property that the taxpayer obtains even after the lien is created. Obviously, this makes it quite a bit easier for the government to collect its taxes.

Tax Lien Procedure in Fargo, North Dakota

In Fargo, North Dakota, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a decision that a person is delinquent in their tax requirement.

They will then mail a document called a "notice and demand," which lets the taxpayer know that they owe money on their taxes, and that they have a certain period of time (usually 10 days) to pay what they owe.

If that time period expires, and the debtor still hasn't paid, the North Dakota tax lien will go into effect automatically, with no additional action required.

Nonetheless, there are limits to how and when a tax lien can be enforced, at least under federal law. The IRS has 10 years to enforce a tax lien in Fargo, North Dakota or anywhere else in the U.S. If it never bothers to take action to seize property that's subject to a tax lien, the lien simply ceases to exist after 10 years. This rule is in place to ensure that the government does not sit on its rights, and to keep potentially-valuable property from being encumbered forever. Essentially, it creates a measure of certainty for both parties.

How Can a Fargo, North Dakota Tax Lien Lawyer Help?

If you find yourself on the receiving end of a tax lien in North Dakota, you are going to have to wade through some substantial and perplexing legal issues.

Therefore, it's important that you hire a tax attorney in Fargo, North Dakota to ensure that whatever legal rights you have in this situation are defended. Your attorney will also be able to advise you on how to best deal with the situation.