Tax Lien Lawyers in Albuquerque
A "lien" in Albuquerque, New Mexico 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 Albuquerque, New Mexico, 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 Albuquerque, New Mexico 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 practically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Albuquerque, New Mexico
The actual process of setting up an Albuquerque, New Mexico tax lien is typically pretty simple. The agency responsible for collecting taxes must first decide that a tax lien is warranted, typically by finding that the debtor owes a significant amount of back 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 (typically 10 days) to pay them without incurring a penalty.
If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in New Mexico have all the options in the taxpayer's property that any other lien holder would have, containing priority over competing creditors.
Nonetheless, in Albuquerque, New Mexico, and anywhere else in America, a tax lien only lasts for 10 years, and then it automatically expires. If the IRS fails to exercise the considerable rights that it has under a tax lien within that period of time, it is assumed that they never intend to do so, and the lien will cease to exist. This ensures that valuable property is only kept out of the economy for a narrow period of time.
How Can a Albuquerque, New Mexico Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in New Mexico, and that they are going to pursue a tax lien to collect their money, things can get very confusing, quite quickly.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Albuquerque, New Mexico, you should not delay to seek the advice of a skilled tax attorney immediately.