Tax Lien Lawyers in Shawano
A "lien" in Shawano, 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 Shawano, Wisconsin tax authorities, to gather taxes that the property-owner has failed to pay.
Tax Liens in Shawano, Wisconsin are usually only effective if the taxpayer has a significant amount of property on which a lien can be placed. However, it's critical 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 Shawano, Wisconsin
The actual process of setting up a Shawano, Wisconsin tax lien is typically pretty simple. The agency responsible for collecting taxes must first decide that a tax lien is warranted, typically 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 (typically 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 results, the IRS or Wisconsin tax agency will have substantial rights against the taxpayer's property.
Nonetheless, if the federal government does not seek to enforce a tax lien in Shawano, 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 guarantee that property is not encumbered by a lien forever.
How Can a Shawano, Wisconsin Tax Lien Lawyer Help?
If the federal government, or the government of Wisconsin informs you that they intend to place a tax lien on your property, you will likely face some pretty confusing and daunting legal issues.
Thus, it should go without saying that if you are facing the prospect of your home or vehicle being slapped with a tax lien, you need to pursue the advice of a reliable tax lawyer in Shawano, Wisconsin as soon as you can.