Tax Lien Lawyers in Kings Mountain

A "lien" in Kings Mountain, 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 several 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.

As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Kings Mountain, North Carolina tax authorities, to compile taxes that the property-owner has failed to pay.

Tax Liens in Kings Mountain, North Carolina are typically 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 essentially any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.

Tax Lien Procedure in Kings Mountain, North Carolina

The process of imposing a tax lien on property in Kings Mountain, North Carolina is normally fairly simple. The first step is for the IRS or local tax agency to determine that a person really 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 determined that they owe back taxes, and that they have a short period of time (normally 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 further action required.

However, if the federal government does not seek to enforce a tax lien in Kings Mountain, 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 ensure that property is not encumbered by a lien forever.

How Can a Kings Mountain, North Carolina Tax Lien Lawyer Help?

If you find yourself on the receiving end of a tax lien in North Carolina, you are going to have to wade through some substantial and difficult legal contentions.

Therefore, it should go without saying that if you are facing the prospect of your home or vehicle being slapped with a tax lien, you need to obtain the advice of a brilliant tax lawyer in Kings Mountain, North Carolina as soon as you can.