Tax Lien Lawyers in Truth Or Consequences
A "lien" in Truth Or Consequences, 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 numerous 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 Truth Or Consequences, New Mexico, a "tax lien" is simply a lien imposed by the government to compile back taxes from a citizen or corporation, when other methods for collecting have failed.
Tax liens in Truth Or Consequences, New Mexico are ineffective if the taxpayer doesn't have any property to place the lien on. However, basically 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 Truth Or Consequences, New Mexico
The process of imposing a tax lien on property in Truth Or Consequences, New Mexico is normally fairly simple. The initial step is for the IRS or local tax agency to decide that a person really owes back taxes, and that it is worth the effort to impose a lien.
Then, the IRS, or state tax authorities, send a "notice and demand," informing the taxpayer that they owe back taxes, and that they are obligated to pay their taxes within 10 days.
If that time period expires, and the debtor still hasn't paid, the New Mexico tax lien will go into effect automatically, with no additional action required.
But, these rights are limited. In Truth Or Consequences, New Mexico, and everywhere else in the United States, the IRS has 10 years to enforce a tax lien. If they do nothing about it within 10 years, the lien expires. This rule exists for a few reasons. First, it encourages the IRS to act as quickly and efficiently as possible, and not "sit on its rights." Also, it acknowledges the fact that any encumbrance on a piece of property, such as a lien, makes the property less valuable. By guaranteeing that the lien will either be satisfied or expire within 10 years, this prevents property from being withheld from the stream of commerce forever.
How Can a Truth Or Consequences, 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, Truth Or Consequences, 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.