Tax Lien Lawyers in Sault Ste. Marie
In Sault Ste. Marie, Michigan, a "lien" is a type of property right, which is created by a court to acquire 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 simply a lien that is formed for the particular purpose of collecting taxes from a delinquent tax payer in Sault Ste. Marie, Michigan.
Tax Liens in Sault Ste. Marie, Michigan are usually 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 basically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Sault Ste. Marie, Michigan
Imposing a tax lien in Sault Ste. Marie, Michigan is normally an uncomplicated process. Usually, the tax authorities simply have to make a decision that the taxpayer is delinquent in their taxes, and that imposing and enforcing a tax lien will actually be worth the effort.
At this point, the taxpayer will receive a letter containing a "notice and demand," which, as the name suggests, gives notice that the recipient owes taxes, and demands quick payment. It will typically give the taxpayer about 10 days to pay the demanded amount.
If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in Michigan have all the options in the taxpayer's property that any other lien holder would have, containing priority over competing creditors.
Nonetheless, in Sault Ste. Marie, Michigan, and anywhere else in America, a tax lien only lasts for 10 years, and then it automatically expires. If the IRS fails to exercise the considerable rights that it has under a tax lien within that period of time, it is assumed that they never intend to do so, and the lien will cease to exist. This ensures that valuable property is only kept out of the economy for a narrow period of time.
How Can a Sault Ste. Marie, 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 confusing, quite quickly.
Thankfully for you, tax lawyers in Sault Ste. Marie, Michigan are experts at dealing with matters such as these, and can make sure your rights are safeguarded, and advise you on the best way to proceed, if you are facing the prospect of a tax lien.