Tax Lien Lawyers in Lyndon

A "lien" in Lyndon, Vermont 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 Lyndon, 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 Lyndon, 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 Lyndon, Vermont

Imposing a tax lien in Lyndon, Vermont is typically an uncomplicated process. Generally, 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.

At this point, they will send the taxpayer a written notice stating that they owe a certain amount of money in back taxes, and that they have a small window of time (often 10 days or less) to pay it.

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 Vermont 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 Lyndon, Vermont, 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 Lyndon, Vermont Tax Lien Lawyer Help?

If you end up having a tax lien imposed on your property in Vermont, you will probably have to deal with some fairly difficult legal issues, which might be confusing to a layperson.

Fortunately, Lyndon, Vermont tax attorneys can help. If you are facing the prospect of a tax lien, you should not hesitate to seek competent legal advice, to ensure that your legal rights are protected.