Tax Lien Lawyers in Airway Heights
A "lien" in Airway Heights, Washington 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 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 Airway Heights, Washington 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 Airway Heights, Washington 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 Airway Heights, Washington
The actual process of setting up an Airway Heights, Washington tax lien is usually pretty simple. The agency responsible for collecting taxes must first decide that a tax lien is warranted, usually by finding that the debtor owes a significant amount of back taxes.
Then, the taxpayer is sent a letter with a "notice and demand," which informs the taxpayer that the IRS has decided that they owe back taxes, and that they have a short period of time (usually 10 days) to pay them without incurring a penalty.
If this deadline expires, and the debtor does not pay the taxes they owe, the lien will take effect automatically. When this occurs, the IRS or Washington tax agency will have significant rights against the taxpayer's property.
Nonetheless, in Airway Heights, Washington, 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 considerable 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 limited period of time.
How Can a Airway Heights, Washington Tax Lien Lawyer Help?
If you find yourself on the receiving end of a tax lien in Washington, you are going to have to wade through some substantial and perplexing legal issues.
Therefore, if you think that any piece of property you own might become subject to a tax lien in Airway Heights, Washington, you should not delay to seek the advice of a competent tax attorney immediately.