Tax Lien Lawyers in Nashville

In Nashville, Tennessee, 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," then, is a lien held by the government to collect a tax-related debt from a private entity, such as a person or corporation in Nashville, Tennessee.

Tax liens in Nashville, Tennessee are ineffective if the taxpayer doesn't have any property to place the lien on. However, virtually any property, including that which the taxpayer obtains after the lien goes into effect, can be affected by a tax lien.

Tax Lien Procedure in Nashville, Tennessee

Imposing a tax lien in Nashville, Tennessee 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.

At this point, they will send the taxpayer a written notice stating that they owe a certain amount of money in back taxes, and that they have a small window of time (often 10 days or less) to pay it.

If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in Tennessee have all the rights in the taxpayer's property that any other lien holder would have, including priority over competing creditors.

But, these rights are limited. In Nashville, Tennessee, and everywhere else in the United States, the IRS has 10 years to enforce a tax lien. If they do nothing about it within 10 years, the lien expires. This rule exists for a few reasons. First, it encourages the IRS to act as quickly and efficiently as possible, and not "sit on its rights." Second, it acknowledges the fact that any encumbrance on a piece of property, such as a lien, makes the property less valuable. By ensuring that the lien will either be satisfied or expire within 10 years, this prevents property from being withheld from the stream of commerce indefinitely.

How Can a Nashville, Tennessee Tax Lien Lawyer Help?

If you are notified by the government that you owe back taxes in Tennessee, 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 Nashville, Tennessee, you should not hesitate to seek the advice of a competent tax attorney immediately.