Tax Lien Lawyers in Calverton
A "lien" in Calverton, 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 Calverton, New York, 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 Calverton, 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 Calverton, New York
The actual process of setting up a Calverton, New York tax lien is normally pretty simple. The agency responsible for collecting taxes must first decide that a tax lien is warranted, normally by finding that the debtor owes a significant amount of back taxes.
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 (normally 10 days) to pay them without incurring a penalty.
If the back taxes are not paid before the deadline is up, the lien will normally take effect immediately, with no further action by the IRS or New York tax agency, giving them all the rights in your property that the law authorizes.
Nonetheless, in Calverton, 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 certain period of time.
How Can a Calverton, 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 intricate legal contentions.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Calverton, New York, you should not delay to seek the advice of a qualified tax attorney immediately.