Tax Lien Lawyers in New Martinsville

A "lien" in New Martinsville, West Virginia is a type of security interest that one person or entity has in someone else's property. Usually, 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 New Martinsville, West Virginia tax authorities, to compile taxes that the property-owner has failed to pay.

However, a tax lien in New Martinsville, West Virginia will be ineffective if the debtor doesn't own any valuable property to encumber with a lien. As with any debt, the creditor can't collect if the debtor doesn't have any assets. Nonetheless, a tax lien can be applied to property that the taxpayer gains after the lien goes into effect.

Tax Lien Procedure in New Martinsville, West Virginia

The actual process of setting up a New Martinsville, West Virginia tax lien is normally pretty simple. The agency responsible for collecting taxes must first decide that a tax lien is warranted, normally 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 (normally 10 days) to pay them without incurring a penalty.

If the back taxes are not paid before the deadline is up, the lien will normally take effect immediately, with no further action by the IRS or West Virginia tax agency, giving them all the rights in your property that the law authorizes.

But, under federal law, there are limits to how tax liens can be enforced in New Martinsville, West Virginia, and elsewhere. Typically, 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 New Martinsville, West Virginia Tax Lien Lawyer Help?

If you receive notice from the federal government, or the government of West Virginia that a tax lien has been imposed on your property, some pretty complex legal issues are necessarily involved.

Therefore, it's important that you retain a tax attorney in New Martinsville, West Virginia to ensure that whatever legal rights you have in this situation are defended. Your attorney will also be able to advise you on how to best deal with the situation.