Tax Lien Lawyers in River Forest
In River Forest, Illinois, a "lien" is a type of property right, which is created by a court to obtain payment of a lawful debt. Generally, a valid lien gives its holder the right to seize the property subject to it, or at least some of the property's equity, to satisfy the debt. If the owner sells a piece of property that's subject to a lien, the creditor who owns the lien may be entitled to the proceeds, up to the amount you owe them. It can also put them "first in line" compared to other creditors, if the debtor files for bankruptcy.
A "tax lien" is simply a lien placed on a piece of property by the state or local government, to secure the payment of back taxes. A tax lien in River Forest, Illinois can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
However, a tax lien in River Forest, Illinois 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 River Forest, Illinois
The actual process of setting up a River Forest, Illinois tax lien is usually pretty simple. The agency responsible for collecting taxes must first determine that a tax lien is warranted, usually by finding that the debtor owes a significant amount of back 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 (usually 10 days) to pay them without incurring a penalty.
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 Illinois tax agency, giving them all the rights in your property that the law allows.
But, under federal law, there are limits to how tax liens can be enforced in River Forest, Illinois, and elsewhere. Generally, the IRS has 10 years to try and enforce a tax lien. If no effort is made to enforce a tax lien for 10 years, the lien is automatically lifted, and the lien holder loses all rights in it. This rule exists to ensure that the government collects its taxes in a reasonable time period, and it prevents valuable property (which could otherwise be contributing to the economy by being bought and sold) is not laded with a lien for an indefinite period of time.
How Can a River Forest, Illinois Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Illinois, 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 River Forest, Illinois, you should not hesitate to seek the advice of a competent tax attorney immediately.