Tax Lien Lawyers in Rio Rancho

A "lien" in Rio Rancho, 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 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 Rio Rancho, New Mexico, a "tax lien" is simply a lien imposed by the government to gather back taxes from a person or corporation, when other methods for collecting have failed.

Tax liens in Rio Rancho, New Mexico are ineffective if the taxpayer doesn't have any property to place the lien on. However, essentially 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 Rio Rancho, New Mexico

In Rio Rancho, 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.

At this point, they will send the taxpayer a written notice stating that they owe a particular amount of money in back taxes, and that they have a small window of time (frequently 10 days or less) to pay it.

If the deadline passes without payment, most tax liens in New Mexico take effect automatically, giving the tax collectors all of the rights in your property that any other lien holder would have.

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 Rio Rancho, New Mexico 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 Rio Rancho, 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 intricate, quite quickly.

Accordingly, if you think that any piece of property you own might become subject to a tax lien in Rio Rancho, New Mexico, you should not hesitate to seek the advice of a skilled tax attorney immediately.