Tax Lien Lawyers in Beaver
In Beaver, Pennsylvania, a "lien" is defined as a property right that's granted to a creditor against a piece of property owned by a debtor, for the purpose of collecting on the debt if the debtor is unwilling or unable to pay. A lien authorizes its owner to exercise some control over the property that is the subject of the lien. This includes the right to force a sale of the property, and to seize the resulting revenue, and priority access to the property ahead of other creditors.
A "tax lien" is simply a lien placed on a piece of property by the state or local government, to secure the payment of back taxes. A tax lien in Beaver, Pennsylvania can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
However, like any other debt-collection method, a tax lien is worthless if the debtor has no considerable property on which a lien can be imposed. To get around this limitation, most tax liens in Beaver, Pennsylvania apply to after-acquired property (property obtained after the lien was created). Most other liens only apply to certain pieces of property, or property that the debtor owned at the time the lien went into effect.
Tax Lien Procedure in Beaver, Pennsylvania
In Beaver, Pennsylvania, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities determine that a taxpayer really owes taxes that they haven't paid (that they're delinquent in their 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 immediate payment. It will normally give the taxpayer about 10 days to pay the demanded amount.
If that time period expires, and the debtor still hasn't paid, the Pennsylvania tax lien will go into effect automatically, with no further action required.
But, these rights are limited. In Beaver, Pennsylvania, 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." Furthermore, it acknowledges the fact that any encumbrance on a piece of property, such as a lien, makes the property less valuable. By ensuring that the lien will either be satisfied or expire within 10 years, this prevents property from being withheld from the stream of commerce indefinitely.
How Can a Beaver, Pennsylvania Tax Lien Lawyer Help?
If the federal government, or the government of Pennsylvania informs you that they intend to place a tax lien on your property, you will likely face some pretty convoluted and daunting legal issues.
Accordingly, if you think that any piece of property you own might become subject to a tax lien in Beaver, Pennsylvania, you should not hesitate to seek the advice of a qualified tax attorney immediately.