Tax Lien Lawyers in New Baltimore
In New Baltimore, Michigan, 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, then, is simply a lien that is established for the particular purpose of collecting taxes from a delinquent tax payer in New Baltimore, Michigan.
Tax Liens in New Baltimore, 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 practically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in New Baltimore, Michigan
The process of imposing a tax lien on property in New Baltimore, Michigan is usually fairly simple. The initial step is for the IRS or local tax agency to decide 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 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 that time period expires, and the debtor still hasn't paid, the Michigan tax lien will go into effect automatically, with no additional action required.
Nonetheless, if the federal government does not seek to enforce a tax lien in New Baltimore, 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 guarantee that property is not encumbered by a lien forever.
How Can a New Baltimore, Michigan Tax Lien Lawyer Help?
If the federal government, or the government of Michigan informs you that they intend to place a tax lien on your property, you will likely face some pretty perplexing and daunting legal issues.
So, it should go without saying that if you are facing the prospect of your home or vehicle being slapped with a tax lien, you need to seek the advice of a reputable tax lawyer in New Baltimore, Michigan as soon as you can.