Tax Lien Lawyers in Kaplan
In Kaplan, Louisiana, a "lien" is a type of property right, which is created by a court to obtain payment of a lawful debt. Usually, 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 additionally put them "first in line" compared to other creditors, if the debtor files for bankruptcy.
A "tax lien," then, is a lien held by the government to collect a tax-related debt from a private entity, such as a person or corporation in Kaplan, Louisiana.
However, like any other debt-collection method, a tax lien is worthless if the debtor has no substantial property on which a lien can be imposed. To get around this limitation, most tax liens in Kaplan, Louisiana apply to after-acquired property (property obtained after the lien was created). Most other liens only apply to particular pieces of property, or property that the debtor owned at the time the lien went into effect.
Tax Lien Procedure in Kaplan, Louisiana
In Kaplan, Louisiana, 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 the back taxes are not paid before the deadline is up, the lien will typically take effect immediately, with no further action by the IRS or Louisiana tax agency, giving them all the rights in your property that the law permits.
However, if the federal government does not seek to enforce a tax lien in Kaplan, Louisiana within 10 years of imposing it, federal law dictates that the lien automatically expires. This is effectively a statute of limitations on a tax lien, meant to encourage the federal government to collect its taxes in a reasonable period of time, and ensure that property is not encumbered by a lien forever.
How Can a Kaplan, Louisiana Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Louisiana, you are going to have to wade through some substantial and confusing legal concerns.
Accordingly, it's important that you contact a tax attorney in Kaplan, Louisiana to ensure that whatever legal rights you have in this situation are protected. Your attorney will also be able to advise you on how to best deal with the situation.