Tax Lien Lawyers in Pontotoc
A "lien" in Pontotoc, Mississippi 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 many 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 likely 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 secure the payment of back taxes. A tax lien in Pontotoc, Mississippi can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
Of course, a tax lien in Pontotoc, Mississippi 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. Evidently, this makes it quite a bit easier for the government to collect its taxes.
Tax Lien Procedure in Pontotoc, Mississippi
The actual process of setting up a Pontotoc, Mississippi tax lien is normally pretty simple. The agency responsible for collecting taxes must first determine that a tax lien is warranted, normally by finding that the debtor owes a significant amount of back taxes.
Then, the IRS, or state tax authorities, send a "notice and demand," informing the taxpayer that they owe back taxes, and that they are required to pay their taxes within 10 days.
If this deadline expires, and the debtor does not pay the taxes they owe, the lien will take effect automatically. When this happens, the IRS or Mississippi tax agency will have considerable rights against the taxpayer's property.
However, in Pontotoc, Mississippi, 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 substantial 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 certain period of time.
How Can a Pontotoc, Mississippi Tax Lien Lawyer Help?
If the federal government, or the government of Mississippi informs you that they intend to place a tax lien on your property, you will likely face some pretty convoluted and daunting legal issues.
Accordingly, if you think that any piece of property you own might become subject to a tax lien in Pontotoc, Mississippi, you should not hesitate to seek the advice of a qualified tax attorney immediately.