Tax Lien Lawyers in Delaware County

In Delaware County, Pennsylvania, a "lien" is defined as a property right that's granted to a creditor against a piece of property owned by a debtor, for the purpose of collecting on the debt if the debtor is unwilling or unable to pay. A lien allows its owner to exercise some control over the property that is the subject of the lien. This includes the right to force a sale of the property, and to seize the resulting revenue, and priority access to the property ahead of other creditors.

A "tax lien" is simply a lien placed on a piece of property by the state or local government, to secure the payment of back taxes. A tax lien in Delaware County, Pennsylvania can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.

However, like any other debt-collection method, a tax lien is worthless if the debtor has no significant property on which a lien can be imposed. To get around this limitation, most tax liens in Delaware County, Pennsylvania apply to after-acquired property (property obtained after the lien was created). Most other liens only apply to specific pieces of property, or property that the debtor owned at the time the lien went into effect.

Tax Lien Procedure in Delaware County, Pennsylvania

Imposing a tax lien in Delaware County, Pennsylvania is typically an uncomplicated process. Generally, the tax authorities simply have to make a determination that the taxpayer is delinquent in their taxes, and that imposing and enforcing a tax lien will actually be worth the effort.

Then, the IRS, or state tax authorities, send a "notice and demand," informing the taxpayer that they owe back taxes, and that they are required to pay their taxes within 10 days.

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

However, 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 Delaware County, Pennsylvania 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 prevent potentially-valuable property from being encumbered indefinitely. Basically, it creates a measure of certainty for both parties.

How Can a Delaware County, Pennsylvania Tax Lien Lawyer Help?

If you are notified by the government that you owe back taxes in Pennsylvania, and that they are going to pursue a tax lien to collect their money, things can get very complicated, very quickly.

Accordingly, if you think that any piece of property you own might become subject to a tax lien in Delaware County, Pennsylvania, you should not hesitate to seek the advice of a competent tax attorney immediately.