Profile picture for tdreyer

Selling with a tax lien

I currently have a tax lien, but would liek to sell my home if possible.

I have read it is possible to get the IRS to release your primary residence from a lien so it can be sold, with the understanding that any profits from the sale would be applied to the tax debt 1st.

I'm wondering if this is true, and if so, how difficult is it to make it happen.
  • October 24 2013 - Melbourne
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Answers (7)

Profile picture for JessicaAggson
Two ways you can do this either have the monies paid through escrow at closing if you have equity in the home or the buyer may be willing to pay back taxes if they absolutely want the house. Good luck!
  • January 04
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Profile picture for Carole Tyne
Contact your local Realtor - If you have equity in the home to pay it off then should be able to have done at closing.   Same as your First Mortgage, Second, line of equity, etc
  • January 04
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Profile picture for TaxDebtHelp
IRS lien filed for personal tax liabilities will be attached to all of your property, the one that you had before a lien was filed, and even the one that you bought after. It can often be discharged to allow you to sell the property, but it would take too long if I'd try to explain how to do it in this post. You can visit our website, http://www.2020taxdebthelp.com/tax-lien-help.php, and read more information about how to deal with the IRS lien, or call the phone number listed on the very top and get a free consultation with a tax resolution specialist. Hope this helps.
  • January 04
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The first lien holder is/are property taxes, second lien holder is your 1st mortgage. As long as you have equity from the sale and there is enough to pay off the tax and mortgage lien you can close on the property.  I am not sure where an IRS lien for personal income taxes fits into the scenerio.  Check with a tax accountant.   
  • October 24 2013
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In my experience, the tax lien can be paid off at closing through proceeds of the sale. The title search will show the buyers the tax lien and no lender will fund the loan without proof it will be paid at closing.
  • October 24 2013
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A CPA or tax attorney can help you make the arrangement with IRS
  • October 24 2013
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The answer seems to be yes you can. 

I would direct you to this link on the IRS website. You might also want to ask your accountant or a tax lawyer to see if they know ways to work out a deal with the IRS. 

http://www.irs.gov/uac/What-if-there-is-a-federal-tax-lien-on-my-home%3F
  • October 24 2013
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