Tax Lien Lawyers in Butler
A "lien" in Butler, New Jersey 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 Butler, New Jersey tax authorities, to compile taxes that the property-owner has failed to pay.
However, like any other debt-collection method, a tax lien is worthless if the debtor has no considerable property on which a lien can be imposed. To get around this limitation, most tax liens in Butler, New Jersey apply to after-acquired property (property obtained after the lien was created). Most other liens only apply to certain pieces of property, or property that the debtor owned at the time the lien went into effect.
Tax Lien Procedure in Butler, New Jersey
Imposing a tax lien in Butler, New Jersey is usually an uncomplicated process. Typically, the tax authorities simply have to make a determination that the taxpayer is delinquent in their taxes, and that imposing and enforcing a tax lien will actually be worth the effort.
At this point, the taxpayer will receive a letter containing a "notice and demand," which, as the name suggests, gives notice that the recipient owes taxes, and demands immediate payment. It will normally give the taxpayer about 10 days to pay the demanded amount.
If that time period expires, and the debtor still hasn't paid, the New Jersey tax lien will go into effect automatically, with no further action required.
However, if the federal government does not seek to enforce a tax lien in Butler, New Jersey 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 Butler, New Jersey Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in New Jersey, and that they are going to pursue a tax lien to collect their money, things can get very convoluted, extremely quickly.
Thankfully, Butler, New Jersey tax attorneys can help. If you are facing the prospect of a tax lien, you should not hesitate to seek qualified legal advice, to ensure that your legal rights are protected.