Tax Lien Lawyers in Sauk Rapids
In Sauk Rapids, Minnesota, a "lien" is a type of property right, which is created by a court to obtain 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 created for the specific purpose of collecting taxes from a delinquent tax payer in Sauk Rapids, Minnesota.
Of course, a tax lien in Sauk Rapids, 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. However, a tax lien applies to property that the taxpayer obtains even after the lien is created. Obviously, this makes it quite a bit easier for the government to collect its taxes.
Tax Lien Procedure in Sauk Rapids, Minnesota
In Sauk Rapids, 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.
At this point, they will send the taxpayer a written notice stating that they owe a certain amount of money in back taxes, and that they have a small window of time (often 10 days or less) to pay it.
If this deadline expires, and the debtor does not pay the taxes they owe, the lien will take effect automatically. When this occurs, the IRS or Minnesota tax agency will have significant rights against the taxpayer's property.
However, if the federal government does not seek to enforce a tax lien in Sauk Rapids, 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 Sauk Rapids, Minnesota Tax Lien Lawyer Help?
If the federal government, or the government of Minnesota informs you that they intend to place a tax lien on your property, you will likely face some pretty complicated and daunting legal issues.
Accordingly, it's important that you hire a tax attorney in Sauk Rapids, Minnesota to ensure that whatever legal rights you have in this situation are protected. Your attorney will also be able to advise you on how to best deal with the situation.