Tax Lien Lawyers in Valley City
A "lien" in Valley City, North Dakota 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 Valley City, North Dakota tax authorities, to collect taxes that the property-owner has failed to pay.
Of course, a tax lien in Valley City, North Dakota isn't worth much more than the paper it's printed on if the debtor doesn't own any property of value, on which a lien could be placed. However, a tax lien applies to property that the taxpayer obtains even after the lien is created. Obviously, this makes it quite a bit easier for the government to collect its taxes.
Tax Lien Procedure in Valley City, North Dakota
The process of imposing a tax lien on property in Valley City, North Dakota is usually fairly simple. The first step is for the IRS or local tax agency to determine that a person actually owes back taxes, and that it is worth the effort to impose a lien.
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 Dakota have all the rights in the taxpayer's property that any other lien holder would have, including priority over competing creditors.
However, in Valley City, North Dakota, 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 substantial 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 Valley City, North Dakota Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in North Dakota, and that they are going to pursue a tax lien to collect their money, things can get very complicated, very quickly.
Luckily for you, tax lawyers in Valley City, North Dakota are experts at dealing with matters such as these, and can make sure your rights are protected, and advise you on the best way to proceed, if you are facing the prospect of a tax lien.