Tax Liens in Berryville, Arkansas
In Berryville, Arkansas, a "lien" is a security interest placed on a piece of property, normally land or a house, to secure the payment of a debt. It typically 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 funds 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 Berryville, Arkansas tax authorities, to compile taxes that the property-owner has failed to pay.
Of course, a tax lien in Berryville, Arkansas 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. Evidently, this makes it quite a bit easier for the government to collect its taxes.
Tax Lien Procedure in Berryville, Arkansas
The process of imposing a tax lien on property in Berryville, Arkansas is normally fairly simple. The initial step is for the IRS or local tax agency to decide that a person really owes back taxes, and that it is worth the effort to impose a lien.
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 specific period of time (normally 10 days) to pay what they owe.
If the deadline passes without payment, most tax liens in Arkansas take effect automatically, giving the tax collectors all of the options in your property that any other lien holder would have.
Nonetheless, in Berryville, Arkansas, 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 considerable 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 certain period of time.
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How Can a Berryville, Arkansas Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in Arkansas, and that they are going to pursue a tax lien to collect their money, things can get very difficult, extremely quickly.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Berryville, Arkansas, you should not delay to seek the advice of a qualified tax attorney immediately.