Tax Lien Lawyers in Tarboro
A "lien" in Tarboro, 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 Tarboro, North Carolina tax authorities, to collect taxes that the property-owner has failed to pay.
Tax Liens in Tarboro, 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 crucial 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 Tarboro, North Carolina
The actual process of setting up a Tarboro, North Carolina tax lien is usually pretty simple. The agency responsible for collecting taxes must first determine 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 the deadline passes without payment, most tax liens in North Carolina take effect automatically, giving the tax collectors all of the rights in your property that any other lien holder would have.
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 Tarboro, 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 Tarboro, North Carolina Tax Lien Lawyer Help?
If you end up having a tax lien imposed on your property in North Carolina, you will probably have to deal with some fairly difficult legal issues, which might be confusing to a layperson.
So, 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 seek the advice of a good tax lawyer in Tarboro, North Carolina as soon as you can.