Tax Lien Lawyers in Bayville
A "lien" in Bayville, New York 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 Bayville, New York, a "tax lien" is simply a lien imposed by the government to collect back taxes from a citizen or corporation, when other methods for collecting have failed.
Tax liens in Bayville, New York 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 Bayville, New York
The actual process of setting up a Bayville, New York tax lien is usually pretty simple. The agency responsible for collecting taxes must first decide that a tax lien is warranted, usually by finding that the debtor owes a significant amount of back taxes.
At this point, the taxpayer will receive a letter containing a "notice and demand," which, as the name suggests, gives notice that the recipient owes taxes, and demands quick payment. It will usually give the taxpayer about 10 days to pay the demanded amount.
If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in New York have all the options in the taxpayer's property that any other lien holder would have, containing priority over competing creditors.
Nonetheless, in Bayville, New York, 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 limited period of time.
How Can a Bayville, New York Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in New York, you are going to have to wade through some substantial and perplexing legal issues.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Bayville, New York, you should not delay to seek the advice of a competent tax attorney immediately.