Tax Lien Lawyers in Edgerton
A "lien" in Edgerton, Wisconsin 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 proceeds if the property is sold, and priority access to the property, in front of other creditors.
As you might have gathered, a "tax lien" is simply a lien placed on property by the IRS or Edgerton, Wisconsin tax authorities, to gather taxes that the property-owner has failed to pay.
Tax Liens in Edgerton, Wisconsin are usually only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's necessary to note that virtually any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Edgerton, Wisconsin
The process of imposing a tax lien on property in Edgerton, Wisconsin is typically fairly simple. The first step is for the IRS or local tax agency to determine that a person truly owes back taxes, and that it is worth the effort to impose a lien.
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 (typically 10 days) to pay them without incurring a penalty.
If that time period expires, and the debtor still hasn't paid, the Wisconsin tax lien will go into effect automatically, with no further action required.
However, if the federal government does not seek to enforce a tax lien in Edgerton, Wisconsin within 10 years of imposing it, federal law dictates that the lien automatically expires. This is effectively a statute of limitations on a tax lien, meant to encourage the federal government to collect its taxes in a reasonable period of time, and ensure that property is not encumbered by a lien forever.
How Can a Edgerton, Wisconsin Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in Wisconsin, and that they are going to pursue a tax lien to collect their money, things can get very intricate, quite quickly.
Luckily, Edgerton, Wisconsin tax attorneys can help. If you are facing the prospect of a tax lien, you should not hesitate to seek skilled legal advice, to ensure that your legal rights are protected.