Tax Lien Lawyers in Spindale

A "lien" in Spindale, 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 Spindale, North Carolina tax authorities, to collect taxes that the property-owner has failed to pay.

Tax Liens in Spindale, 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 important 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 Spindale, North Carolina

The actual process of setting up a Spindale, North Carolina tax lien is usually pretty simple. The agency responsible for collecting taxes must first decide that a tax lien is warranted, usually by finding that the debtor owes a significant amount of back taxes.

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 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 Spindale, 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 limited period of time.

How Can a Spindale, 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 perplexing legal issues.

Therefore, if you think that any piece of property you own might become subject to a tax lien in Spindale, North Carolina, you should not delay to seek the advice of a competent tax attorney immediately.