What You Didn't Know About Federal Tax Liens Could Kill Your Real Estate Deal

[Bruce D. Kowal]

🚨 What You Didn't Know About Federal Tax Liens Could Kill Your Real Estate Deal

Think that NFTL showing up in your title search means "game over"? Think again.

Here's what most practitioners don't realize:

✅ The entire U.S. federal tax lien certificate operation runs on about 20 specialists - yes, TWENTY people handling discharge and subordination applications for the entire country, all working out of Florence, Kentucky.

✅ That "one guy" in Pittsburgh who handles complex trust and entity issues? He's real. The IRS doesn't cross-train because these cases are too specialized.

✅ You can get an NFTL withdrawn WITHOUT paying the tax debt - it just removes the public notice while leaving the underlying lien in place. Your deal can still close.

✅ Many liens should have auto-released years ago but the IRS missed the 10-year collection statute expiration. Always check the assessment dates.

The brutal reality? Your million-dollar transaction depends on an overworked specialist in Kentucky who processes applications in the order they hit their desk. No expediting unless you can prove genuine emergency.

And right now? With the government shutdown, nearly half the IRS workforce is furloughed. Those "45-day processing times" just became fantasy numbers.

Bottom line: Start the lien resolution process BEFORE you need it. The IRS doesn't care about your closing date.

Fellow real estate attorneys, mortgage brokers, and BP Members: What's the most challenging NFTL situation you've encountered? Let's share war stories in the comments. 👇