Delaware
Tax Attorneys

Stopping Tax Levies & Liens

A federal tax lien is indeed a legal claim by the IRS on a taxpayer’s property or rights to property as security for unpaid tax debts. It is an important mechanism used by the IRS to protect the government’s interest in collecting tax debts.

When a taxpayer neglects or refuses to pay their tax debt after receiving a notice and demand for payment, the IRS automatically creates a federal tax lien. The IRS then files a Notice of Federal Tax Lien (NFTL) with state and local authorities, which serves as a public notice of the IRS’s claim on the taxpayer’s property.

The filing of the NFTL establishes the IRS’s priority against other creditors. It notifies other creditors that the IRS has a legal claim on the taxpayer’s property and can affect the taxpayer’s ability to sell or transfer assets. The filing date of the NFTL is crucial as it determines the IRS’s priority over subsequent liens or claims.

The federal tax lien remains in place until the tax debt is fully paid or becomes unenforceable due to the expiration of the collection statute expiration date (CSED). The CSED is typically ten years from the date of assessment but can be extended or suspended in certain situations.

The federal tax lien attaches to the taxpayer’s property, including real estate, personal property, and financial assets. If the taxpayer sells the property, the lien attaches to the proceeds of the sale, which means the IRS has a claim on the funds derived from the sale.

Enforcing a federal tax lien can present challenges for the IRS, particularly when it comes to liquidating certain assets. While the lien secures the IRS’s claim on the taxpayer’s property, converting the lien into funds may be complex, and the IRS may face obstacles in obtaining the necessary funds.

It’s important to note that federal tax liens have specific procedures and rules, and their implications can vary depending on individual circumstances. Consulting with a tax professional or attorney experienced in dealing with tax liens is advisable to receive personalized guidance and assistance based on your specific situation.

Property taxes are levied on real property to generate revenue for public services and infrastructure. When homeowners fail to pay their property taxes, the overdue amount becomes a lien on the property, and the local government has the authority to sell the home through a tax sale process to collect the delinquent taxes.

In Delaware, the tax sale process is initiated by the taxing authority filing a petition with the court to obtain a judgment that directs the sheriff to sell the home at a public auction. This process is known as the “monition” method. Alternatively, Delaware also has an alternative tax sale procedure that does not involve obtaining a court judgment but requires the taxing authority to provide notice to the property owner through mail, posting on the property, public posting, and publication in a newspaper.

Before the tax sale takes place, the sheriff will post a notice on the property, providing the property owner with 20 days to bring the overdue taxes, penalties, and costs up to date. If the property owner fails to pay the delinquent amounts within the specified time, the court will issue a writ directing the sheriff to proceed with the sale.

Delaware is considered a tax deed state, which means that the tax sale is conducted through a public auction, and the home is sold to the highest bidder. After the sale, the final bid typically needs to be approved by the department of finance or the chief county financial officer. If the bid is not approved, another sale may be held.

Following the tax sale in Delaware, the property owner generally has a redemption period of 60 days to redeem the home by paying the amount owed plus any additional costs. However, it’s important to note that if the alternative tax sale procedure is used, the redemption period can be extended to one year.

Regarding mortgages, if a homeowner has a mortgage on the property, the loan servicer may collect money as part of the monthly payment to cover property taxes and pay them through an escrow account. However, if property taxes are not collected through the escrow account, the homeowner is responsible for paying them directly.

Unfiled Tax Returns

Working with a tax attorney who specializes in tax law can provide significant advantages when dealing with tax issues in Delaware. Tax attorneys have a deep understanding of Delaware tax laws and regulations. They stay updated on any changes or updates to ensure they provide accurate and relevant advice tailored to your specific situation. A tax attorney will assess your circumstances and provide personalized guidance based on the specific tax issues you’re facing.

They can analyze the applicable tax laws, identify potential risks or liabilities, and help you navigate through the complexities of the Delaware tax system. A tax attorney will act as your advocate and represent your interests when dealing with tax authorities. They will communicate with the Delaware Division of Revenue or the IRS on your behalf, handle negotiations, and ensure your rights are protected throughout the process.

Tax attorneys can assist you with a wide range of tax issues, including audits, disputes, compliance matters, and tax planning strategies. They can provide advice on minimizing tax liabilities, optimizing deductions and credits, and ensuring compliance with Delaware tax laws. Tax attorneys also have a solid foundation in legal principles and can provide legal analysis and representation when needed.

If your tax issues escalate to legal proceedings, a tax attorney can guide you through the litigation process and provide effective legal arguments on your behalf. Dealing with tax issues can be stressful and time-consuming. By working with a tax attorney, you can have peace of mind knowing that you have a knowledgeable professional handling your tax matters, allowing you to focus on other important aspects of your life or business.

When selecting a tax attorney, it’s important to research their experience, reputation, and expertise in Delaware tax laws. Consultations with potential tax attorneys can help you assess their qualifications, ask relevant questions, and determine if they are the right fit for your specific tax situation. Consulting with a qualified tax attorney is recommended to receive personalized advice based on your specific circumstances and the relevant tax laws and regulations in Delaware.

Contact Our Delaware Tax Attorneys

Using the services of a tax attorney who specializes in Delaware tax laws, such as those at Anderson Bradshaw, can provide significant benefits when dealing with tax issues in Delaware. Their expertise in Delaware tax laws and regulations allows them to offer personalized guidance and representation tailored to your individual situation.

Tax attorneys who specialize in Delaware tax laws have a deep understanding of the specific tax regulations and requirements in the state. They stay up to date with any changes in the laws and can provide accurate and current advice that is specific to Delaware.

A tax attorney from Anderson Bradshaw can assess your specific circumstances and provide personalized guidance tailored to your situation. They can analyze the relevant tax laws, help you navigate audits, tax disputes, or any other tax-related matters, and advise you on the best course of action based on your individual needs.

When dealing with tax issues, it’s crucial to have someone who can protect your rights and advocate for your interests. A tax attorney will ensure that your rights are upheld throughout the process and that you are treated fairly by the Delaware Division of Revenue or the IRS.

They will effectively communicate and negotiate on your behalf to achieve the best possible outcome. Tax issues can be complex and overwhelming.

A tax attorney from Anderson Bradshaw can provide comprehensive assistance, including tax compliance, representing you in audits or disputes, assisting with tax planning, and helping you resolve any outstanding tax problems you may have. They will guide you through the process, handle communication with tax authorities, and work towards efficiently and effectively resolving your tax issues.

By consulting with a qualified tax attorney, such as those at Anderson Bradshaw, you can benefit from their specialized knowledge of Delaware tax laws and regulations. They will provide accurate and tailored advice specific to your situation, ensuring that you have the support and representation needed to effectively address your tax issues and work towards a favorable resolution.

Our tax attorneys provide IRS tax help for residents all over Delaware including Wilmington, Dover, Newark, Middletown, Smyrna, Milford, Seaford, Georgetown, Millsboro, Elsmere, and many more. Call (877) 986-1156 or contact our Delaware tax attorney online to arrange a free consultation.