On December 16th, the Internal Revenue Service jumped on board and announced relief
for homeowners who are in over their heads (IR-2008-141).
According to the IRS, “If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options. Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. Taxpayers or their representatives may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances” (www.irs.gov).
IRS Commissioner Doug Shulman said, “We realize these are difficult times for many Americans. We will ensure we have the resources in place to resolve these issues quickly and homeowners can complete their transactions.”
According to National Tax Relief, “… a lien essentially gives the government legal claim to the taxpayers’ property as security for a tax debt, preventing the owner from being able to sell those assets without authorization or release by the IRS.”
If you are interested and do not know where to turn, contact The DeSelms Team and RE/MAX Elite and we will help guide you in the right direction.
Filing a Notice of Federal Tax Lien is public notice to your creditors that the federal government has a claim on the property.
For information about how to apply for a certificate of lien subordination visit www.irs.gov and follow directions in Publication 784, How to Prepare an Application for a Certificate of Subordination of a Federal Tax Lien.
In some cases where a lien was released, the homeowner will be required to make a repayment plan. If you are considering purchasing a home, have your agent, check the title; without a tax lien discharge, the previous taxpayer may be unable to complete the home ownership change and the title will not be clear. Publication 783, Instructions on How to Apply for a Certificate of Discharge of a Federal Tax Lien.
In 2008 there are more than one million federal tax liens outstanding tied personal property; these liens are preventing homeowners from refinancing or selling personal property. In you are one of these homeowners and are looking for advice, guidance, or information reguarding a lien visit www.irs.gov or call Andy Brown and The DeSelms Team.
To apply for a tax lien discharge, applicants must follow directions in
