Tax Lien Lawyers in New Bern
A "lien" in New Bern, 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 New Bern, North Carolina tax authorities, to collect taxes that the property-owner has failed to pay.
Tax Liens in New Bern, 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 essential 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 New Bern, North Carolina
Imposing a tax lien in New Bern, North Carolina is typically an uncomplicated process. Generally, the tax authorities simply have to make a determination that the taxpayer is delinquent in their taxes, and that imposing and enforcing a tax lien will actually be worth the effort.
They will then mail a document called a "notice and demand," which lets the taxpayer know that they owe money on their taxes, and that they have a certain period of time (usually 10 days) to pay what they owe.
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, there are limits to how and when a tax lien can be enforced, at least under federal law. The IRS has 10 years to enforce a tax lien in New Bern, North Carolina or anywhere else in the U.S. If it never bothers to take action to seize property that's subject to a tax lien, the lien simply ceases to exist after 10 years. This rule is in place to ensure that the government does not sit on its rights, and to prevent potentially-valuable property from being encumbered indefinitely. Basically, it creates a measure of certainty for both parties.
How Can a New Bern, 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 complex legal issues.
Accordingly, if you think that any piece of property you own might become subject to a tax lien in New Bern, North Carolina, you should not hesitate to seek the advice of a competent tax attorney immediately.