Tax Lien Lawyers in Fergus Falls
In Fergus Falls, Minnesota, a "lien" is a type of property right, which is created by a court to acquire 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 formed for the particular purpose of collecting taxes from a delinquent tax payer in Fergus Falls, Minnesota.
However, a tax lien in Fergus Falls, 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. Nonetheless, a tax lien can be applied to property that the taxpayer gains after the lien goes into effect.
Tax Lien Procedure in Fergus Falls, Minnesota
In Fergus Falls, Minnesota, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities decide that a taxpayer really owes taxes that they haven't paid (that they're delinquent in their taxes).
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 (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.
Nonetheless, if the federal government does not seek to enforce a tax lien in Fergus Falls, 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 guarantee that property is not encumbered by a lien forever.
How Can a Fergus Falls, Minnesota Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in Minnesota, and that they are going to pursue a tax lien to collect their money, things can get very difficult, extremely quickly.
Therefore, it's important that you retain a tax attorney in Fergus Falls, Minnesota to ensure that whatever legal rights you have in this situation are defended. Your attorney will also be able to advise you on how to best deal with the situation.