Tax Lien Lawyers in Barre

A "lien" in Barre, Vermont 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 Barre, Vermont 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 Barre, Vermont 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 Barre, Vermont

Imposing a tax lien in Barre, Vermont is usually an uncomplicated process. Typically, the tax authorities simply have to make a determination that the taxpayer is delinquent in their taxes, and that imposing and enforcing a tax lien will actually be worth the effort.

They will then mail a document called a "notice and demand," which lets the taxpayer know that they owe money on their taxes, and that they have a specific period of time (normally 10 days) to pay what they owe.

If this 10-day period expires without payment, the tax lien arises automatically. Once this happens, the tax authorities in Vermont have all the rights in the taxpayer's property that any other lien holder would have, including priority over competing creditors.

However, in Barre, Vermont, 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 Barre, Vermont Tax Lien Lawyer Help?

If you are notified by the government that you owe back taxes in Vermont, and that they are going to pursue a tax lien to collect their money, things can get very convoluted, extremely quickly.

Fortunately for you, tax lawyers in Barre, Vermont 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.