Tax Lien Lawyers in Norfolk
A "lien" in Norfolk, Virginia is a type of security interest that one person or entity has in someone else's property. Typically, a lien is created by a court, to secure payment of a debt. A lien gives its holder many rights in the property that is subject to it, including the right to seize the proceeds if the property is sold, and priority access to the property, in front 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 Norfolk, Virginia can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
Tax liens in Norfolk, Virginia are ineffective if the taxpayer doesn't have any property to place the lien on. However, virtually any property, including that which the taxpayer obtains after the lien goes into effect, can be affected by a tax lien.
Tax Lien Procedure in Norfolk, Virginia
The actual process of setting up a Norfolk, Virginia tax lien is usually pretty simple. The agency responsible for collecting taxes must first determine that a tax lien is warranted, usually by finding that the debtor owes a significant amount of back taxes.
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 (usually 10 days) to pay them without incurring a penalty.
If the back taxes are not paid before the deadline is up, the lien will usually take effect immediately, with no further action by the IRS or Virginia tax agency, giving them all the rights in your property that the law allows.
But, under federal law, there are limits to how tax liens can be enforced in Norfolk, Virginia, and elsewhere. Generally, the IRS has 10 years to try and enforce a tax lien. If no effort is made to enforce a tax lien for 10 years, the lien is automatically lifted, and the lien holder loses all rights in it. This rule exists to ensure that the government collects its taxes in a reasonable time period, and it prevents valuable property (which could otherwise be contributing to the economy by being bought and sold) is not laded with a lien for an indefinite period of time.
How Can a Norfolk, Virginia Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Virginia, you are going to have to wade through some substantial and complex legal issues.
Accordingly, if you think that any piece of property you own might become subject to a tax lien in Norfolk, Virginia, you should not hesitate to seek the advice of a competent tax attorney immediately.