New Hampshire
Tax Attorneys

Stopping Tax Levies & Liens

A federal tax lien, also known as a statutory lien or silent lien, is a charge or encumbrance on the property of a taxpayer that serves as security for a tax debt. The Internal Revenue Code (IRC) governs the creation and enforcement of federal tax liens.

The federal tax lien arises automatically under IRC Section 6321 when a taxpayer fails to pay their tax debt after receiving a notice and demand for payment from the IRS. The lien attaches to all of the taxpayer’s property or rights to property, effectively making it collateral for the unpaid tax liability. The federal tax lien is considered a general lien, which means it encompasses all of the taxpayer’s property.

It’s important to note that the federal tax lien is created by law and exists even without the filing of a Notice of Federal Tax Lien (NFTL). The NFTL is a document filed by the IRS with state and local authorities to notify other creditors of the IRS’s claim on the taxpayer’s property. While the filing of the NFTL is not necessary to create the lien, it is crucial for establishing the IRS’s priority against other creditors. The date of filing the NFTL determines the IRS’s priority position.

The federal tax lien continues until the tax debt is paid in full or becomes unenforceable due to the expiration of the collection statute expiration date (CSED). Generally, the IRS has ten years from the date of assessment to collect the tax debt. However, certain circumstances may extend or suspend the collection period, such as entering into an installment agreement that extends the statute of limitations or the issuance of a statutory notice of deficiency.

When a taxpayer transfers property subject to a federal tax lien, the lien remains attached to the property. If the taxpayer sells the property, the lien attaches to the proceeds of the sale. However, enforcing the lien against certain assets like cash sale proceeds can be challenging for the IRS.

The filing of the Notice of Federal Tax Lien is not required to perfect the IRS’s lien against the taxpayer but is necessary to establish priority against competing lien interests. The NFTL protects the government’s claim against third parties, such as purchasers, security interest holders, mechanic’s lienors, or judgment lien creditors. The filing requirements for the NFTL vary depending on whether it pertains to real property or personal property.

The NFTL must be filed in the designated office determined by state law for the specific type of property. For real property, the filing typically occurs with the county recorder or clerk in the county where the property is located. For personal property, the filing is usually done with the county clerk’s office in the county where the taxpayer resides. In cases where a state fails to provide a designated office or designates multiple offices, the NFTL is filed with the clerk of the United States District Court for the judicial district where the property is situated.

A NFTL has a specific duration, and it must be refiled within the required refiling period to maintain its priority as of the initial filing date. If the refiling period expires and the NFTL has not been refiled, it may self-release after thirty days from the expiration of ten years after the assessment, subject to any extensions or suspensions of the collection statute of limitations.

The content and form of the Notice of Federal Tax Lien are prescribed by the Secretary of the Treasury. State law cannot impose additional requirements regarding the form or content of the NFTL. The IRS uses a standardized format for the NFTL, including essential information such as the taxpayer’s name, the amount of the tax debt, and the date of assessment.

The tax lien process generally works as follows in New Hampshire. In February, a Notice of Delinquency is sent to the owner(s) of each delinquent tax account, informing them of the overdue taxes.

If the taxes remain unpaid, a Notice of Impending Lien is sent to the current owner(s) at least 30 days before the lien date. This notice includes the amount of taxes owed, interest, and the cost of preparing and mailing the notice. It also specifies the last date and time for payment.

If the taxes are not paid by the deadline, a tax lien is placed on the property and recorded at the Grafton County Registry of Deeds. Once the lien is placed, the interest rate increases to 14% per annum.

Within 45 days of the lien execution, the lienholder must search the records at the Registry of Deeds to identify any mortgage holders on the liened properties. This step is crucial to notify mortgage holders about the municipality’s priority lien.

A notice is forwarded to the mortgage holders, including banks, mortgage companies, or individuals, informing them about the tax lien. This notification is necessary to ensure the municipality’s priority lien above all mortgages. The cost associated with this step is calculated and added to the amount due on each account.

If the lien amount remains unpaid after two years from the lien date, the municipality may initiate the deeding process to acquire the property through a Tax Collector Deed for delinquent taxes. This process is also regulated by New Hampshire State laws and involves a series of notices and associated costs.

Taxpayers or individuals with legal interest in a property can make partial payments at any time. When the full amount of taxes, interest, and costs is paid in full, the Tax Collector must send a Notice of Redemption to the Registry of Deeds within 30 days of the payment date.

Unfiled Tax Returns

Utilizing the services of a tax attorney, such as those at Anderson Bradshaw, can indeed provide significant benefits when dealing with tax issues in New Hampshire. Their specialization in taxation law matters and their ability to offer personalized guidance and support tailored to your specific needs can be invaluable.

A tax attorney from Anderson Bradshaw will have a deep understanding of New Hampshire tax laws and regulations, allowing them to provide customized advice based on your unique situation. They will help you navigate the complexities of the tax system, whether you’re dealing with disputes, audits, compliance issues, or other tax-related challenges. As your representative, they will ensure that your rights are protected when interacting with tax authorities such as the New Hampshire Department of Revenue or the IRS.

During a consultation with a tax attorney, you can discuss the details of your case and receive tailored advice and assistance. They will carefully analyze relevant tax laws, assess your situation, and develop a strategy aimed at achieving the best possible outcome for you.

Tax attorneys possess extensive knowledge of tax laws and regulations, enabling them to provide valuable advice on tax planning strategies, optimize your tax situation, and guide you through the legal aspects of taxation. Whether you’re an individual or a business, their expertise can assist you in effectively managing your tax matters.

It’s important to stay informed about changes in tax laws and regulations, and working with a qualified tax attorney ensures that you receive accurate and up-to-date advice specific to New Hampshire. By having a tax attorney from Anderson Bradshaw by your side, you can alleviate the stress and uncertainty associated with tax issues and increase the likelihood of achieving a favorable resolution.

When selecting a tax attorney, it’s crucial to conduct your own research and due diligence. Consider factors such as their experience, reputation, and expertise in New Hampshire tax laws. Consulting with a qualified tax attorney is the best way to obtain personalized advice and guidance for your specific tax situation.

Contact Our New Hampshire Tax Attorneys

Employing the services of a tax attorney, such as those at Anderson Bradshaw, can indeed provide significant benefits when dealing with tax issues in New Hampshire. Their specialization in New Hampshire tax laws and regulations allows them to offer personalized guidance and representation tailored to individual situations.

A tax attorney from Anderson Bradshaw will have a deep understanding of New Hampshire tax laws and can assess your circumstances to provide accurate and tailored advice. They can analyze relevant tax laws, help you navigate audits, wage garnishment, failure to file taxes, or any other tax-related matters you may be facing. By working with a tax attorney, you can gain a clear understanding of your rights, obligations, and available options.

Tax issues can be stressful and complex, but having a tax attorney by your side can help alleviate that burden. They will ensure the protection of your rights throughout the process, working towards achieving the best possible outcome for you. They will effectively communicate with the New Hampshire Department of Revenue or the IRS on your behalf, advocating for your interests and negotiating when necessary.

Anderson Bradshaw’s expertise in tax matters and their commitment to personalized service can be invaluable when navigating New Hampshire tax laws and regulations. They will guide you through the process, assist with tax compliance, and work towards efficiently and effectively resolving your tax problems.

By consulting with a qualified tax attorney, such as those at Anderson Bradshaw, you can receive accurate and tailored advice specific to your situation. This will ensure that you have the support and representation needed to effectively address your tax problems and work towards a favorable resolution.

Our tax attorneys provide IRS tax help for residents all over New Hampshire including Manchester, Nashua, Concord, Derry, Dover, Rochester, Salem, Merrimack, Londonderry, Hudson, and many more. Call (877) 986-1156 or contact our New Hampshire tax attorney online to schedule a free consultation.