Tax Lien Lawyers in Roanoke
A "lien" in Roanoke, Virginia is a type of security interest that one person or entity has in someone else's property. Usually, 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 Roanoke, 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 Roanoke, 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 Roanoke, Virginia
In Roanoke, Virginia, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities determine that a taxpayer really owes taxes that they haven't paid (that they're delinquent in their 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 (normally 10 days) to pay them without incurring a penalty.
If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in Virginia have all the rights in the taxpayer's property that any other lien holder would have, including priority over competing creditors.
However, in Roanoke, Virginia, and anywhere else in America, a tax lien only lasts for 10 years, and then it automatically expires. If the IRS fails to exercise the substantial rights that it has under a tax lien within that period of time, it is assumed that they never intend to do so, and the lien will cease to exist. This ensures that valuable property is only kept out of the economy for a certain period of time.
How Can a Roanoke, Virginia Tax Lien Lawyer Help?
If the federal government, or the government of Virginia informs you that they intend to place a tax lien on your property, you will likely face some pretty convoluted and daunting legal issues.
Fortunately for you, tax lawyers in Roanoke, Virginia 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.