Tax Lien Lawyers in Holly Springs
A "lien" in Holly Springs, North Carolina 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 various 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.
As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Holly Springs, North Carolina tax authorities, to gather taxes that the property-owner has failed to pay.
Tax Liens in Holly Springs, North Carolina are usually only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's crucial to note that practically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Holly Springs, North Carolina
The process of imposing a tax lien on property in Holly Springs, North Carolina 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 this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in North Carolina have all the options in the taxpayer's property that any other lien holder would have, containing priority over competing creditors.
Nonetheless, in Holly Springs, North Carolina, 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 Holly Springs, North Carolina Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in North Carolina, and that they are going to pursue a tax lien to collect their money, things can get very confusing, quite quickly.
Thankfully for you, tax lawyers in Holly Springs, North Carolina are experts at dealing with matters such as these, and can make sure your rights are safeguarded, and advise you on the best way to proceed, if you are facing the prospect of a tax lien.