Tax Lien Lawyers in Kimberly

A "lien" in Kimberly, 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 funds 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 Kimberly, Wisconsin tax authorities, to gather taxes that the property-owner has failed to pay.

Tax Liens in Kimberly, Wisconsin are usually only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's essential to note that basically any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.

Tax Lien Procedure in Kimberly, Wisconsin

Imposing a tax lien in Kimberly, Wisconsin is normally an uncomplicated process. Usually, the tax authorities simply have to make a decision 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, the taxpayer will receive a letter containing a "notice and demand," which, as the name suggests, gives notice that the recipient owes taxes, and demands quick payment. It will typically give the taxpayer about 10 days to pay the demanded amount.

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

But, under federal law, there are limits to how tax liens can be enforced in Kimberly, Wisconsin, and elsewhere. Usually, 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 Kimberly, Wisconsin Tax Lien Lawyer Help?

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

Thankfully for you, tax lawyers in Kimberly, Wisconsin are experts at dealing with matters such as these, and can make sure your rights are safeguarded, and advise you on the best way to proceed, if you are facing the prospect of a tax lien.