Tax Lien Lawyers in Round Lake Beach
In Round Lake Beach, Illinois, a "lien" is a type of property right, which is created by a court to acquire 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 acquire the payment of back taxes. A tax lien in Round Lake Beach, Illinois can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
Of course, a tax lien in Round Lake Beach, Illinois 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. Obviously, this makes it quite a bit easier for the government to collect its taxes.
Tax Lien Procedure in Round Lake Beach, Illinois
In Round Lake Beach, Illinois, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities decide that a taxpayer actually owes taxes that they haven't paid (that they're delinquent in their taxes).
Then, the IRS, or state tax authorities, send a "notice and demand," informing the taxpayer that they owe back taxes, and that they are obligated to pay their taxes within 10 days.
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.
Nonetheless, in Round Lake Beach, Illinois, 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.
How Can a Round Lake Beach, 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 perplexing legal issues.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Round Lake Beach, Illinois, you should not delay to seek the advice of a competent tax attorney immediately.