Tax Lien Lawyers in Purcellville
A "lien" in Purcellville, 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 Purcellville, Virginia can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
However, a tax lien in Purcellville, Virginia 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 Purcellville, Virginia
In Purcellville, Virginia, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities determine that a taxpayer actually owes taxes that they haven't paid (that they're delinquent in their taxes).
Then, the IRS, or state tax authorities, send a "notice and demand," informing the taxpayer that they owe back taxes, and that they are required to pay their taxes within 10 days.
If that time period expires, and the debtor still hasn't paid, the Virginia tax lien will go into effect automatically, with no further action required.
But, under federal law, there are limits to how tax liens can be enforced in Purcellville, 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 Purcellville, 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, it's important that you hire a tax attorney in Purcellville, Virginia 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.