Tax Liens in Ketchikan, Alaska
In Ketchikan, Alaska, a "lien" is a security interest placed on a piece of property, usually land or a house, to secure the payment of a debt. It generally gives a creditor the right to take ownership of any equity that exists in the property, to secure the payment of the debt. If the owner sells the property, the creditor may also be entitled to the proceeds of the sale, up to the amount owed. It can also give the holder of the lien a higher priority status, giving them an advantage over competing creditors, if the debtor files bankruptcy.
As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Ketchikan, Alaska tax authorities, to collect taxes that the property-owner has failed to pay.
However, a tax lien in Ketchikan, Alaska will be ineffective if the debtor doesn't own any valuable property to encumber with a lien. As with any debt, the creditor can't collect if the debtor doesn't have any assets. However, a tax lien can be applied to property that the taxpayer acquires after the lien goes into effect.
Tax Lien Procedure in Ketchikan, Alaska
In Ketchikan, Alaska, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a determination that a person is delinquent in their tax obligation.
Then, the taxpayer is sent a letter with a "notice and demand," which informs the taxpayer that the IRS has determined that they owe back taxes, and that they have a short period of time (usually 10 days) to pay them without incurring a penalty.
If that time period expires, and the debtor still hasn't paid, the Alaska tax lien will go into effect automatically, with no further action required.
But, under federal law, there are limits to how tax liens can be enforced in Ketchikan, Alaska, and elsewhere. Generally, the IRS has 10 years to try and enforce a tax lien. If no effort is made to enforce a tax lien for 10 years, the lien is automatically lifted, and the lien holder loses all rights in it. This rule exists to ensure that the government collects its taxes in a reasonable time period, and it prevents valuable property (which could otherwise be contributing to the economy by being bought and sold) is not laded with a lien for an indefinite period of time.
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How Can a Ketchikan, Alaska Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Alaska, you are going to have to wade through some substantial and complex legal issues.
Accordingly, if you think that any piece of property you own might become subject to a tax lien in Ketchikan, Alaska, you should not hesitate to seek the advice of a competent tax attorney immediately.