What Everyone Needs To Know About Estate Lien
The government has a lot of important tasks to accomplish, but as with everyone else, the government needs money to do it. This is why the government has to levy taxes form its citizens. Most of the people pay taxes happily, but some people try to avoid taxes. This is the reason that estate lien has been introduced in different states. It is somewhat like an embargo which restricts the value of any estate. The estate lien can be imposed by state and county government and even IRS in some cases.
Estate lien is imposed on land or building. The most common case where estate lien is imposed is the failure of the taxpayer to pay his property tax. In this case, an estate lien is imposed on the property. Imposition of the estate lien means that capital can neither be sold off nor can it mortgaged, not even to muster the funds to pay taxes which are due. This means that if you get an estate lien, it is time to do some serious thinking.
The very first thing that you have to do is check your tax records. If you find even a slight fallacy in your tax records, you should immediately bring it to the notice of tax collector of your area. There are some tribunals to sort out such matters.
You can try to coax the tax collector to allow you to take benefit of any future tax dues settlement schemes. These schemes allow you to pay your tax in easy installments. In some cases, Uncle Sam gets extra conciliatory and even waives off your penalties so you can spend the original tax amount and get rid of your estate lien.
Let us take the worst case scenario now. If you are not able to pay your taxes. The positions come into the picture. Your federal tax lien records are tallied, and then the estate is put up for lien sales. All hope is not lost yet. The person who buys the tax lien certificate at the lien sales can not start estate foreclosures proceeding immediately. You still get a redemption period to pay the tax and penalties. If you can pay back everything now, you get to keep the property.
Estate lien has turned out to be one of the most effective tax recovery measures ever since its introduction.