Tax Lien Lawyers in Piscataway
A "lien" in Piscataway, 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 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.
In Piscataway, New Jersey, a "tax lien" is simply a lien imposed by the government to compile back taxes from a person or corporation, when other methods for collecting have failed.
Tax Liens in Piscataway, 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 essential to note that essentially any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Piscataway, New Jersey
The process of imposing a tax lien on property in Piscataway, New Jersey is normally fairly simple. The first step is for the IRS or local tax agency to determine that a person really 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 some amount of money in back taxes, and that they have a small window of time (commonly 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 happens, the IRS or New Jersey tax agency will have considerable rights against the taxpayer's property.
However, 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 Piscataway, 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 prevent potentially-valuable property from being encumbered indefinitely. Basically, it creates a measure of certainty for both parties.
How Can a Piscataway, 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 complex to a layperson.
Accordingly, if you think that any piece of property you own might become subject to a tax lien in Piscataway, New Jersey, you should not hesitate to seek the advice of a qualified tax attorney immediately.