Tax Lien Lawyers in Jersey City
A "lien" in Jersey City, 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 Jersey City, New Jersey, a "tax lien" is simply a lien imposed by the government to gather back taxes from a citizen or corporation, when other methods for collecting have failed.
Tax Liens in Jersey City, New Jersey are usually only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's necessary 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 Jersey City, New Jersey
In Jersey City, New Jersey, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities decide that a taxpayer truly owes taxes that they haven't paid (that they're delinquent in their taxes).
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 the back taxes are not paid before the deadline is up, the lien will typically 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 permits.
Nonetheless, if the federal government does not seek to enforce a tax lien in Jersey City, 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 guarantee that property is not encumbered by a lien forever.
How Can a Jersey City, New Jersey Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in New Jersey, you are going to have to wade through some substantial and complicated legal concerns.
Therefore, it's important that you contact a tax attorney in Jersey City, New Jersey to ensure that whatever legal rights you have in this situation are defended. Your attorney will also be able to advise you on how to best deal with the situation.