Selling your property is almost impossible if the IRS has filed a tax lien. If you are trying to sell or refinance your home and there is a tax lien, you can file certificate of subordination of federal tax lien. There is no special form, but you or your representative can send in a letter requesting subordination of the lien. You must include certain information in the letter. Follow the instructions in IRS Publication 784.
The Internal Revenue Service today announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.
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. The process to request a discharge is in Publication 783. See Today’s IRS Announcement Here
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Lowrance Law LLC