Tax Lien Lawyers in Belle Plaine

In Belle Plaine, Minnesota, 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.

A tax lien, then, is simply a lien that is appointed for the specific purpose of collecting taxes from a delinquent tax payer in Belle Plaine, Minnesota.

However, a tax lien in Belle Plaine, Minnesota 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 Belle Plaine, Minnesota

In Belle Plaine, Minnesota, 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 the back taxes are not paid before the deadline is up, the lien will normally take effect immediately, with no further action by the IRS or Minnesota tax agency, giving them all the rights in your property that the law authorizes.

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

If you end up having a tax lien imposed on your property in Minnesota, you will probably have to deal with some fairly hard legal issues, which might be complex to a layperson.

Therefore, 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 obtain the advice of a brilliant tax lawyer in Belle Plaine, Minnesota as soon as you can.