Tax Lien Lawyers in Hannibal
A "lien" in Hannibal, Missouri is a property right that a person or entity has in property owned by someone else, created by law, for the purpose of enforcing a debt. A lien gives its holder numerous rights in the property of another person, including the right to seize the proceeds of a sale of the property, and, if the debtor files for bankruptcy, the right to go to the front of the line among other creditors, making it more possible that the lien holder will collect something.
A "tax lien" is simply a lien placed on a piece of property by the state or local government, to acquire the payment of back taxes. A tax lien in Hannibal, Missouri can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
Tax liens in Hannibal, Missouri are ineffective if the taxpayer doesn't have any property to place the lien on. However, basically any property, including that which the taxpayer acquires after the lien goes into effect, can be affected by a tax lien.
Tax Lien Procedure in Hannibal, Missouri
The process of imposing a tax lien on property in Hannibal, Missouri is typically fairly simple. The initial step is for the IRS or local tax agency to decide that a person truly owes back taxes, and that it is worth the effort to impose a lien.
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 (typically 10 days) to pay them without incurring a penalty.
If that time period expires, and the debtor still hasn't paid, the Missouri tax lien will go into effect automatically, with no additional action required.
Nonetheless, there are limits to how and when a tax lien can be enforced, at least under federal law. The IRS has 10 years to enforce a tax lien in Hannibal, Missouri or anywhere else in the U.S. If it never bothers to take action to seize property that's subject to a tax lien, the lien simply ceases to exist after 10 years. This rule is in place to ensure that the government does not sit on its rights, and to keep potentially-valuable property from being encumbered forever. Essentially, it creates a measure of certainty for both parties.
How Can a Hannibal, Missouri Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in Missouri, and that they are going to pursue a tax lien to collect their money, things can get very confusing, quite quickly.
Therefore, it's important that you contact a tax attorney in Hannibal, Missouri 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.