Tax Lien Lawyers in Negaunee

In Negaunee, Michigan, 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, then, is simply a lien that is appointed for the specific purpose of collecting taxes from a delinquent tax payer in Negaunee, Michigan.

Tax Liens in Negaunee, Michigan are generally only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's necessary to note that essentially any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.

Tax Lien Procedure in Negaunee, Michigan

The process of imposing a tax lien on property in Negaunee, Michigan is usually fairly simple. The first step is for the IRS or local tax agency to determine that a person actually owes back taxes, and that it is worth the effort to impose a lien.

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 that time period expires, and the debtor still hasn't paid, the Michigan 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 Negaunee, Michigan 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 Negaunee, Michigan Tax Lien Lawyer Help?

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

Accordingly, it's important that you hire a tax attorney in Negaunee, Michigan 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.