Tax Lien Lawyers in Norristown
In Norristown, 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.
As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Norristown, Pennsylvania tax authorities, to compile taxes that the property-owner has failed to pay.
However, a tax lien in Norristown, Pennsylvania will be ineffective if the debtor doesn't own any valuable property to encumber with a lien. As with any debt, the creditor can't collect if the debtor doesn't have any assets. However, a tax lien can be applied to property that the taxpayer acquires after the lien goes into effect.
Tax Lien Procedure in Norristown, Pennsylvania
In Norristown, Pennsylvania, the procedure for imposing a tax lien is relatively simple. First, the IRS makes a determination that a person is delinquent in their tax obligation.
Then, the taxpayer is sent a letter with a "notice and demand," which informs the taxpayer that the IRS has determined 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 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.
However, if the federal government does not seek to enforce a tax lien in Norristown, Pennsylvania within 10 years of imposing it, federal law dictates that the lien automatically expires. This is effectively a statute of limitations on a tax lien, meant to encourage the federal government to collect its taxes in a reasonable period of time, and ensure that property is not encumbered by a lien forever.
How Can a Norristown, Pennsylvania Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Pennsylvania, you are going to have to wade through some substantial and difficult legal contentions.
Accordingly, it's important that you retain a tax attorney in Norristown, Pennsylvania to ensure that whatever legal rights you have in this situation are protected. Your attorney will also be able to advise you on how to best deal with the situation.