Tax Lien Lawyers in Beatrice

A "lien" in Beatrice, Nebraska 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 Beatrice, Nebraska tax authorities, to gather taxes that the property-owner has failed to pay.

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

Tax Lien Procedure in Beatrice, Nebraska

The process of imposing a tax lien on property in Beatrice, Nebraska is typically fairly simple. The first step is for the IRS or local tax agency to determine that a person truly owes back taxes, and that it is worth the effort to impose a lien.

At this point, they will send the taxpayer a written notice stating that they owe a particular amount of money in back taxes, and that they have a small window of time (frequently 10 days or less) to pay it.

If this deadline expires, and the debtor does not pay the taxes they owe, the lien will take effect automatically. When this results, the IRS or Nebraska tax agency will have substantial rights against the taxpayer's property.

However, if the federal government does not seek to enforce a tax lien in Beatrice, Nebraska within 10 years of imposing it, federal law dictates that the lien automatically expires. This is effectively a statute of limitations on a tax lien, meant to encourage the federal government to collect its taxes in a reasonable period of time, and ensure that property is not encumbered by a lien forever.

How Can a Beatrice, Nebraska Tax Lien Lawyer Help?

If you find yourself on the receiving end of a tax lien in Nebraska, you are going to have to wade through some substantial and confusing legal concerns.

Accordingly, it's important that you contact a tax attorney in Beatrice, Nebraska to ensure that whatever legal rights you have in this situation are protected. Your attorney will also be able to advise you on how to best deal with the situation.