Tax Lien Lawyers in Rosemount

In Rosemount, Minnesota, 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 Rosemount, Minnesota.

Of course, a tax lien in Rosemount, Minnesota isn't worth much more than the paper it's printed on if the debtor doesn't own any property of value, on which a lien could be placed. Nonetheless, a tax lien applies to property that the taxpayer obtains even after the lien is created. Apparently, this makes it quite a bit easier for the government to collect its taxes.

Tax Lien Procedure in Rosemount, Minnesota

In Rosemount, Minnesota, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a decision that a person is delinquent in their tax requirement.

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 the deadline passes without payment, most tax liens in Minnesota take effect automatically, giving the tax collectors all of the options in your property that any other lien holder would have.

Nonetheless, in Rosemount, Minnesota, 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 Rosemount, 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 confusing, quite quickly.

Therefore, if you think that any piece of property you own might become subject to a tax lien in Rosemount, Minnesota, you should not delay to seek the advice of a skilled tax attorney immediately.