Tax Lien Lawyers in Las Cruces
A "lien" in Las Cruces, 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 many 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 Las Cruces, New Mexico, 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 Las Cruces, New Mexico are ineffective if the taxpayer doesn't have any property to place the lien on. However, virtually any property, including that which the taxpayer obtains after the lien goes into effect, can be affected by a tax lien.
Tax Lien Procedure in Las Cruces, New Mexico
In Las Cruces, New Mexico, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a determination that a person is delinquent in their tax obligation.
Then, the taxpayer is sent a letter with a "notice and demand," which informs the taxpayer that the IRS has determined that they owe back taxes, and that they have a short period of time (normally 10 days) to pay them without incurring a penalty.
If that time period expires, and the debtor still hasn't paid, the New Mexico tax lien will go into effect automatically, with no further action required.
But, under federal law, there are limits to how tax liens can be enforced in Las Cruces, New Mexico, and elsewhere. Typically, the IRS has 10 years to try and enforce a tax lien. If no effort is made to enforce a tax lien for 10 years, the lien is automatically lifted, and the lien holder loses all rights in it. This rule exists to ensure that the government collects its taxes in a reasonable time period, and it prevents valuable property (which could otherwise be contributing to the economy by being bought and sold) is not laded with a lien for an indefinite period of time.
How Can a Las Cruces, New Mexico Tax Lien Lawyer Help?
If you receive notice from the federal government, or the government of New Mexico that a tax lien has been imposed on your property, some pretty complex legal issues are necessarily involved.
Thankfully, Las Cruces, New Mexico tax attorneys can help. If you are facing the prospect of a tax lien, you should not hesitate to seek qualified legal advice, to ensure that your legal rights are protected.