Tax Lien Lawyers in Montclair

A "lien" in Montclair, 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 various 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 Montclair, New Jersey, a "tax lien" is simply a lien imposed by the government to collect back taxes from a citizen or corporation, when other methods for collecting have failed.

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

Tax Lien Procedure in Montclair, New Jersey

The process of imposing a tax lien on property in Montclair, New Jersey is usually fairly simple. The initial step is for the IRS or local tax agency to decide that a person actually 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 certain period of time (usually 10 days) to pay what they owe.

If that time period expires, and the debtor still hasn't paid, the New Jersey tax lien will go into effect automatically, with no additional action required.

Nonetheless, there are limits to how and when a tax lien can be enforced, at least under federal law. The IRS has 10 years to enforce a tax lien in Montclair, New Jersey or anywhere else in the U.S. If it never bothers to take action to seize property that's subject to a tax lien, the lien simply ceases to exist after 10 years. This rule is in place to ensure that the government does not sit on its rights, and to keep potentially-valuable property from being encumbered forever. Essentially, it creates a measure of certainty for both parties.

How Can a Montclair, 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 perplexing legal issues.

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