Tax Lien Lawyers in Elkton

In Elkton, Maryland, a "lien" is a type of property right, which is created by a court to obtain payment of a lawful debt. Typically, 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 further put them "first in line" compared to other creditors, if the debtor files for bankruptcy.

In Elkton, Maryland, a "tax lien" is simply a lien imposed by the government to compile back taxes from a person or corporation, when other methods for collecting have failed.

However, a tax lien in Elkton, Maryland 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 Elkton, Maryland

In Elkton, Maryland, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a determination that a person is delinquent in their tax obligation.

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

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

However, if the federal government does not seek to enforce a tax lien in Elkton, Maryland 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 Elkton, Maryland Tax Lien Lawyer Help?

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

Accordingly, it's important that you retain a tax attorney in Elkton, Maryland 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.