Tax Lien Lawyers in Le Mars
In Le Mars, Iowa, 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.
A tax lien, then, is simply a lien that is created for the specific purpose of collecting taxes from a delinquent tax payer in Le Mars, Iowa.
However, a tax lien in Le Mars, Iowa 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 Le Mars, Iowa
In Le Mars, Iowa, 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 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 Iowa tax agency, giving them all the rights in your property that the law allows.
However, in Le Mars, Iowa, 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 limited period of time.
How Can a Le Mars, Iowa Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Iowa, 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 Le Mars, Iowa, you should not hesitate to seek the advice of a competent tax attorney immediately.