Tax Lien Lawyers in Garwood

A "lien" in Garwood, 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 numerous 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 possible that the lien holder will collect something.

In Garwood, New Jersey, a "tax lien" is simply a lien imposed by the government to compile back taxes from a citizen or corporation, when other methods for collecting have failed.

Tax Liens in Garwood, New Jersey are typically only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's important to note that basically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.

Tax Lien Procedure in Garwood, New Jersey

In Garwood, New Jersey, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities decide that a taxpayer really owes taxes that they haven't paid (that they're delinquent in their taxes).

Then, the taxpayer is sent a letter with a "notice and demand," which informs the taxpayer that the IRS has decided that they owe back taxes, and that they have a short period of time (normally 10 days) to pay them without incurring a penalty.

If the back taxes are not paid before the deadline is up, the lien will normally take effect immediately, with no further action by the IRS or New Jersey tax agency, giving them all the rights in your property that the law authorizes.

But, under federal law, there are limits to how tax liens can be enforced in Garwood, New Jersey, and elsewhere. Typically, the IRS has 10 years to try and enforce a tax lien. If no effort is made to enforce a tax lien for 10 years, the lien is automatically lifted, and the lien holder loses all rights in it. This rule exists to ensure that the government collects its taxes in a reasonable time period, and it prevents valuable property (which could otherwise be contributing to the economy by being bought and sold) is not laded with a lien for an indefinite period of time.

How Can a Garwood, New Jersey Tax Lien Lawyer Help?

If you end up having a tax lien imposed on your property in New Jersey, you will probably have to deal with some fairly hard legal issues, which might be complicated to a layperson.

Therefore, if you think that any piece of property you own might become subject to a tax lien in Garwood, New Jersey, you should not delay to seek the advice of a qualified tax attorney immediately.