Tax Lien Lawyers in Sergeant Bluff

In Sergeant Bluff, Iowa, 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.

A tax lien, then, is simply a lien that is created for the specific purpose of collecting taxes from a delinquent tax payer in Sergeant Bluff, Iowa.

However, a tax lien in Sergeant Bluff, 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 Sergeant Bluff, Iowa

In Sergeant Bluff, Iowa, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities determine that a taxpayer truly owes taxes that they haven't paid (that they're delinquent in their taxes).

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 (typically 10 days) to pay them without incurring a penalty.

If that time period expires, and the debtor still hasn't paid, the Iowa tax lien will go into effect automatically, with no further action required.

However, there are limits to how and when a tax lien can be enforced, at least under federal law. The IRS has 10 years to enforce a tax lien in Sergeant Bluff, Iowa or anywhere else in the U.S. If it never bothers to take action to seize property that's subject to a tax lien, the lien simply ceases to exist after 10 years. This rule is in place to ensure that the government does not sit on its rights, and to prevent potentially-valuable property from being encumbered indefinitely. Basically, it creates a measure of certainty for both parties.

How Can a Sergeant Bluff, Iowa Tax Lien Lawyer Help?

If you are notified by the government that you owe back taxes in Iowa, and that they are going to pursue a tax lien to collect their money, things can get very intricate, quite quickly.

Accordingly, if you think that any piece of property you own might become subject to a tax lien in Sergeant Bluff, Iowa, you should not hesitate to seek the advice of a skilled tax attorney immediately.