Tax Liens in Muscle Shoals, Alabama
In Muscle Shoals, Alabama, a "lien" is a security interest placed on a piece of property, typically land or a house, to secure the payment of a debt. It usually 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 Muscle Shoals, Alabama tax authorities, to gather taxes that the property-owner has failed to pay.
Of course, a tax lien in Muscle Shoals, Alabama 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. However, a tax lien applies to property that the taxpayer obtains even after the lien is created. Apparently, this makes it quite a bit easier for the government to collect its taxes.
Tax Lien Procedure in Muscle Shoals, Alabama
In Muscle Shoals, Alabama, 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.
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 given period of time (typically 10 days) to pay what they owe.
If the deadline passes without payment, most tax liens in Alabama take effect automatically, giving the tax collectors all of the rights in your property that any other lien holder would have.
However, in Muscle Shoals, Alabama, and anywhere else in America, a tax lien only lasts for 10 years, and then it automatically expires. If the IRS fails to exercise the substantial rights that it has under a tax lien within that period of time, it is assumed that they never intend to do so, and the lien will cease to exist. This ensures that valuable property is only kept out of the economy for a narrow period of time.
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How Can a Muscle Shoals, Alabama Tax Lien Lawyer Help?
If you receive notice from the federal government, or the government of Alabama that a tax lien has been imposed on your property, some pretty intricate legal issues are necessarily involved.
Luckily, Muscle Shoals, Alabama tax attorneys can help. If you are facing the prospect of a tax lien, you should not hesitate to seek skilled legal advice, to ensure that your legal rights are protected.