Tax Lien Lawyers in Kill Devil Hills
A "lien" in Kill Devil Hills, 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 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.
As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Kill Devil Hills, North Carolina tax authorities, to collect taxes that the property-owner has failed to pay.
Tax Liens in Kill Devil Hills, North Carolina are generally only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's critical to note that basically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Kill Devil Hills, North Carolina
The process of imposing a tax lien on property in Kill Devil Hills, North Carolina is usually fairly simple. The initial step is for the IRS or local tax agency to decide that a person actually 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 (usually 10 days) to pay them without incurring a penalty.
If that time period expires, and the debtor still hasn't paid, the North Carolina tax lien will go into effect automatically, with no additional action required.
Nonetheless, if the federal government does not seek to enforce a tax lien in Kill Devil Hills, North Carolina 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 guarantee that property is not encumbered by a lien forever.
How Can a Kill Devil Hills, North Carolina Tax Lien Lawyer Help?
If the federal government, or the government of North Carolina informs you that they intend to place a tax lien on your property, you will likely face some pretty perplexing and daunting legal issues.
Luckily for you, tax lawyers in Kill Devil Hills, 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.