Tax Lien Lawyers in Canton
In Canton, Massachusetts, 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.
In Canton, Massachusetts, a "tax lien" is simply a lien imposed by the government to collect back taxes from a citizen or corporation, when other methods for collecting have failed.
Tax Liens in Canton, Massachusetts are generally only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's critical to note that basically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Canton, Massachusetts
In Canton, Massachusetts, 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 taxpayer is sent a letter with a "notice and demand," which informs the taxpayer that the IRS has decided 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 Massachusetts tax agency, giving them all the rights in your property that the law allows.
Nonetheless, if the federal government does not seek to enforce a tax lien in Canton, Massachusetts 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 guarantee that property is not encumbered by a lien forever.
How Can a Canton, Massachusetts Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in Massachusetts, and that they are going to pursue a tax lien to collect their money, things can get very perplexing, very quickly.
Therefore, it's important that you hire a tax attorney in Canton, Massachusetts to ensure that whatever legal rights you have in this situation are defended. Your attorney will also be able to advise you on how to best deal with the situation.