Tax Lien Lawyers in Olmsted Falls
A "lien" in Olmsted Falls, Ohio 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.
A tax lien, then, is simply a lien that is established for the particular purpose of collecting taxes from a delinquent tax payer in Olmsted Falls, Ohio.
Of course, a tax lien in Olmsted Falls, Ohio isn't worth much more than the paper it's printed on if the debtor doesn't own any property of value, on which a lien could be placed. Nonetheless, a tax lien applies to property that the taxpayer obtains even after the lien is created. Apparently, this makes it quite a bit easier for the government to collect its taxes.
Tax Lien Procedure in Olmsted Falls, Ohio
The process of imposing a tax lien on property in Olmsted Falls, Ohio is typically fairly simple. The initial step is for the IRS or local tax agency to decide that a person truly owes back taxes, and that it is worth the effort to impose a lien.
They will then mail a document called a "notice and demand," which lets the taxpayer know that they owe money on their taxes, and that they have a given period of time (typically 10 days) to pay what they owe.
If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in Ohio have all the options in the taxpayer's property that any other lien holder would have, containing priority over competing creditors.
Nonetheless, 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 Olmsted Falls, Ohio 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 keep potentially-valuable property from being encumbered forever. Essentially, it creates a measure of certainty for both parties.
How Can a Olmsted Falls, Ohio Tax Lien Lawyer Help?
If you end up having a tax lien imposed on your property in Ohio, you will probably have to deal with some fairly challenging legal issues, which might be intricate to a layperson.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Olmsted Falls, Ohio, you should not delay to seek the advice of a skilled tax attorney immediately.