State tax liens are legal claims against a property or assets for unpaid taxes. In the state of Maryland, tax liens are issued by the Comptroller of Maryland’s Office of the Comptroller. These liens are designed to ensure that individuals and businesses fulfill their tax obligations. However, it is important to understand the duration and implications of these tax liens.
In Maryland, state tax liens are valid for 20 years from the date of assessment. This means that the lien will remain in effect for two decades, during which the government can take legal actions to recover the unpaid taxes. The lien is filed with the local Circuit Court and serves as a public record, which can impact the individual’s credit score and ability to obtain credit.
During the 20-year period, the government has the authority to seize assets, garnish wages, or place a levy on financial accounts to collect the unpaid taxes. Once the lien is filed, it takes priority over other creditors, meaning that the government has the first right to collect the outstanding taxes. If the tax lien remains unpaid, the government may ultimately sell the property to satisfy the debt.
Here are some frequently asked questions about the duration and implications of state tax liens in Maryland:
1. How long does a state tax lien stay on my credit report?
A state tax lien can stay on your credit report for up to seven years from the date it is paid or released.
2. Can I sell my property if there is a state tax lien on it?
Yes, you can sell your property if there is a state tax lien on it. However, the lien must be satisfied or released before the sale can proceed.
3. Can I negotiate with the government to lower the amount of the tax lien?
In some cases, the government may be willing to negotiate a settlement or payment plan. It is advisable to contact the Office of the Comptroller to discuss your options.
4. Can the government renew a state tax lien after 20 years?
No, the government cannot renew a state tax lien after the 20-year period. Once the lien expires, it is no longer enforceable.
5. Will the government automatically release the tax lien after 20 years?
No, the government does not automatically release the tax lien after 20 years. It is the responsibility of the taxpayer to ensure that the lien is satisfied or released.
6. Can I still obtain credit if there is a state tax lien on my record?
Having a state tax lien on your record can negatively impact your credit score and make it difficult to obtain credit. However, once the lien is paid or released, your credit score can gradually improve.
7. Can I remove a state tax lien from my record before the 20-year period expires?
If you believe there is an error or inaccuracy in the tax lien, you can dispute it with the Office of the Comptroller. However, if the lien is valid, it cannot be removed before the 20-year period expires.
8. Can bankruptcy help me with a state tax lien?
Bankruptcy may provide some relief for state tax liens, but it depends on the specific circumstances and the type of bankruptcy filing. Consulting with a bankruptcy attorney is recommended to fully understand your options.
In conclusion, state tax liens in Maryland are valid for 20 years from the date of assessment. These liens can have significant implications on an individual’s credit score and financial status. It is essential to fulfill tax obligations in a timely manner to avoid the consequences of a tax lien.