Tax Lien Lawyers in Portage

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

Tax Liens in Portage, Wisconsin are usually only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's important 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 Portage, Wisconsin

The actual process of setting up a Portage, Wisconsin tax lien is typically pretty simple. The agency responsible for collecting taxes must first determine that a tax lien is warranted, typically by finding that the debtor owes a significant amount of back taxes.

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 immediate 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 rights in the taxpayer's property that any other lien holder would have, including priority over competing creditors.

However, in Portage, Wisconsin, 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 narrow period of time.

How Can a Portage, Wisconsin Tax Lien Lawyer Help?

If you find yourself on the receiving end of a tax lien in Wisconsin, you are going to have to wade through some substantial and confusing legal concerns.

Accordingly, if you think that any piece of property you own might become subject to a tax lien in Portage, Wisconsin, you should not hesitate to seek the advice of a skilled tax attorney immediately.