Tax Liens in Mountain Home, Arkansas
In Mountain Home, Arkansas, 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 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 Mountain Home, Arkansas tax authorities, to collect taxes that the property-owner has failed to pay.
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 Mountain Home, Arkansas apply to after-acquired property (property acquired 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 Mountain Home, Arkansas
In Mountain Home, Arkansas, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a decision that a person is delinquent in their tax requirement.
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 certain period of time (usually 10 days) to pay what they owe.
If the back taxes are not paid before the deadline is up, the lien will usually take effect immediately, with no further action by the IRS or Arkansas tax agency, giving them all the rights in your property that the law allows.
Nonetheless, in Mountain Home, 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 limited period of time.
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How Can a Mountain Home, Arkansas Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Arkansas, you are going to have to wade through some substantial and perplexing legal issues.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Mountain Home, Arkansas, you should not delay to seek the advice of a competent tax attorney immediately.