Tax Lien Lawyers in Stevens Point
A "lien" in Stevens Point, Wisconsin 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 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 Stevens Point, Wisconsin tax authorities, to collect taxes that the property-owner has failed to pay.
Tax Liens in Stevens Point, Wisconsin are generally 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 essentially any property, including that which is acquired after the lien is imposed, can be subject to a tax lien.
Tax Lien Procedure in Stevens Point, Wisconsin
The actual process of setting up a Stevens Point, Wisconsin tax lien is usually pretty simple. The agency responsible for collecting taxes must first determine 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 determined 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 the back taxes are not paid before the deadline is up, the lien will usually take effect immediately, with no further action by the IRS or Wisconsin tax agency, giving them all the rights in your property that the law allows.
However, in Stevens Point, 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 limited period of time.
How Can a Stevens Point, Wisconsin Tax Lien Lawyer Help?
If you receive notice from the federal government, or the government of Wisconsin that a tax lien has been imposed on your property, some pretty complicated legal issues are necessarily involved.
Luckily for you, tax lawyers in Stevens Point, Wisconsin are experts at dealing with matters such as these, and can make sure your rights are protected, and advise you on the best way to proceed, if you are facing the prospect of a tax lien.