Tax Lien Lawyers in Wahpeton

A "lien" in Wahpeton, 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 Wahpeton, North Dakota tax authorities, to compile taxes that the property-owner has failed to pay.

Of course, a tax lien in Wahpeton, 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. Evidently, this makes it quite a bit easier for the government to collect its taxes.

Tax Lien Procedure in Wahpeton, North Dakota

The process of imposing a tax lien on property in Wahpeton, North Dakota 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.

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 specific period of time (normally 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 Wahpeton, 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 certain period of time.

How Can a Wahpeton, North Dakota Tax Lien Lawyer Help?

If you find yourself on the receiving end of a tax lien in North Dakota, 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 Wahpeton, North Dakota, you should not hesitate to seek the advice of a qualified tax attorney immediately.