Tax Lien Lawyers in Sioux Falls
In Sioux Falls, South Dakota, a "lien" is specified as a property right that's authorized 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," then, is a lien held by the government to collect a tax-related debt from a private entity, such as a citizen or corporation in Sioux Falls, South Dakota.
Tax Liens in Sioux Falls, South Dakota are typically only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's critical to note that basically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Sioux Falls, South Dakota
The actual process of setting up a Sioux Falls, South Dakota 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.
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 quick payment. It will normally give the taxpayer about 10 days to pay the demanded amount.
If this deadline expires, and the debtor does not pay the taxes they owe, the lien will take effect automatically. When this happens, the IRS or South Dakota tax agency will have considerable rights against the taxpayer's property.
But, these rights are limited. In Sioux Falls, South Dakota, 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." Also, it acknowledges the fact that any encumbrance on a piece of property, such as a lien, makes the property less valuable. By guaranteeing that the lien will either be satisfied or expire within 10 years, this prevents property from being withheld from the stream of commerce forever.
How Can a Sioux Falls, South Dakota Tax Lien Lawyer Help?
If you end up having a tax lien imposed on your property in South Dakota, you will probably have to deal with some fairly hard legal issues, which might be complicated to a layperson.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Sioux Falls, South Dakota, you should not delay to seek the advice of a qualified tax attorney immediately.