Tax Lien Lawyers in Allendale

In Allendale, South Carolina, 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 permits 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 Allendale, South Carolina tax authorities, to gather taxes that the property-owner has failed to pay.

However, like any other debt-collection method, a tax lien is worthless if the debtor has no substantial property on which a lien can be imposed. To get around this limitation, most tax liens in Allendale, South Carolina apply to after-acquired property (property obtained after the lien was created). Most other liens only apply to particular pieces of property, or property that the debtor owned at the time the lien went into effect.

Tax Lien Procedure in Allendale, South Carolina

The process of imposing a tax lien on property in Allendale, South Carolina is typically fairly simple. The first step is for the IRS or local tax agency to determine that a person truly owes back taxes, and that it is worth the effort to impose a lien.

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 (typically 10 days) to pay them without incurring a penalty.

If that time period expires, and the debtor still hasn't paid, the South Carolina 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 Allendale, South Carolina 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 Allendale, South Carolina Tax Lien Lawyer Help?

If the federal government, or the government of South Carolina informs you that they intend to place a tax lien on your property, you will likely face some pretty intricate and daunting legal issues.

Thankfully for you, tax lawyers in Allendale, South Carolina are experts at dealing with matters such as these, and can make sure your rights are protected, and advise you on the best way to proceed, if you are facing the prospect of a tax lien.