A Lowell Tax Liens Lawyer Discusses Tax Liens

A lien is a form of property right, established by judicial action to secure payment of a debt. A tax lien is imposed by the government to collect back taxes. Typically, as a Lowell tax liens lawyer can explain, a tax lien is employed as a last result when other collection methods have proved fruitless.

The Rights the Tax Lien Establishes

Once a lien attaches to the property, a valid lien holder has certain rights, among which include:

• The ability to seize the property subject to the lien, or limited, as a Lowell tax liens attorney emphasizes, to a portion of the equity of the property equal to the amount of the lien
• The right to sale proceeds of the property up to the value of the lien
• A priority in bankruptcy, which your Lowell tax liens lawyer will tell you, places the lien holder before other creditors if the property holder files for bankruptcy

Establishing the Lien

Once the IRS or Massachusetts tax agency has decided to proceed, the process is quick. Typically, the delinquent taxpayer is sent a notice letter which demands payment with a short period of time. A Lowell tax liens lawyer explains this is most often 10 days and if the taxpayer fails to act, the lien automatically attaches.

Options for the Taxpayer

Your Lowell tax liens attorney will advise of the logic of being proactive. Most individuals and businesses realize their tax dilemma but their usual delays can carry harsh consequences. It is best to address the situation right away. It is a far better to be negotiating with a tax agency before the lien has attached than after. Options your Lowell tax liens lawyer may suggest include:

• Release
• Discharge
• Subordination

Contact a Lowell Tax Liens Attorney

The options you have in selling property or conducting business may be seriously hampered by a tax lien. If you are having tax problems, make sure you understand your options. Contact the Law Office of Bruce A. Gage, a Lowell tax liens lawyer. Our office is conveniently located at 491 Dutton St. Suite 211 (Business Center, 3rd Floor) Lowell, MA 01854.