Tax Lien Lawyers in Laurinburg
A "lien" in Laurinburg, 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 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.
As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Laurinburg, North Carolina tax authorities, to compile taxes that the property-owner has failed to pay.
Tax Liens in Laurinburg, 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 critical to note that virtually any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Laurinburg, North Carolina
The process of imposing a tax lien on property in Laurinburg, 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.
At this point, they will send the taxpayer a written notice stating that they owe a some amount of money in back taxes, and that they have a small window of time (commonly 10 days or less) to pay it.
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 rights in the taxpayer's property that any other lien holder would have, including priority over competing creditors.
But, under federal law, there are limits to how tax liens can be enforced in Laurinburg, North Carolina, and elsewhere. Typically, the IRS has 10 years to try and enforce a tax lien. If no effort is made to enforce a tax lien for 10 years, the lien is automatically lifted, and the lien holder loses all rights in it. This rule exists to ensure that the government collects its taxes in a reasonable time period, and it prevents valuable property (which could otherwise be contributing to the economy by being bought and sold) is not laded with a lien for an indefinite period of time.
How Can a Laurinburg, 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.
Accordingly, if you think that any piece of property you own might become subject to a tax lien in Laurinburg, North Carolina, you should not hesitate to seek the advice of a qualified tax attorney immediately.