Tax Lien Lawyers in Hobbs
A "lien" in Hobbs, 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 Hobbs, 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 Hobbs, New Mexico are ineffective if the taxpayer doesn't have any property to place the lien on. However, practically any property, including that which the taxpayer acquires after the lien goes into effect, can be affected by a tax lien.
Tax Lien Procedure in Hobbs, New Mexico
In Hobbs, New Mexico, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a decision that a person is delinquent in their tax requirement.
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 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 Mexico 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 Hobbs, New Mexico 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 Hobbs, 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, it's important that you contact a tax attorney in Hobbs, New Mexico 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.