Tax Lien Lawyers in Staunton
A "lien" in Staunton, Virginia is a type of security interest that one person or entity has in someone else's property. Normally, 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 funds 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 acquire the payment of back taxes. A tax lien in Staunton, 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 Staunton, 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. Nonetheless, a tax lien can be applied to property that the taxpayer gains after the lien goes into effect.
Tax Lien Procedure in Staunton, Virginia
In Staunton, Virginia, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities decide that a taxpayer truly owes taxes that they haven't paid (that they're delinquent in their taxes).
At this point, they will send the taxpayer a written notice stating that they owe a particular amount of money in back taxes, and that they have a small window of time (frequently 10 days or less) to pay it.
If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in Virginia have all the options in the taxpayer's property that any other lien holder would have, containing priority over competing creditors.
But, these rights are limited. In Staunton, Virginia, 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." Additionally, 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 Staunton, 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 confusing and daunting legal issues.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Staunton, Virginia, you should not delay to seek the advice of a skilled tax attorney immediately.