Although I have no experience in this area, I've heard that IRS liens can be shorted. If true, what is the process. Got a 7 year old $30k irs lien against a deceased borrower.
Does anyone know what the priority of these things are? This one was recorded right before several huge state liens were. As it stands, my attorney tells me that the state liens have to get behind a first mortgage and property tax liens against the house as they were recorded after the 1st mortgage and prop. tax lien. IRS lien follows the same rules?
Thanks in advance.
I personally know an investor who was able to get an IRS lien released without paying it off, by having the debt follow the owner; there was some paperwork sent to the IRS to do this. Not sure what happens due to your case being a deceased owner.
Some IRS lien links:
Thanks much Steve. I'll check out these links.
Wow Steve, lot's of references, but I didn't look them up, I'll just comment.
Bottom line, the IRS will negoiate and when there is a pending deal, they will generally release the property if they see that the price is as good as they could get out of it, just like a bank.
Not saying they forgive the obligation, but they will release that lien. When the IRS places liens, they can hit everything you own, but release liens as they are paid off.
IRS liens can be negotiated for a fraction of the lien amount. Their priority depends on the recording date, just like any other lien (other than property tax liens). The only weird thing about them is the right of redemption where the IRS can buy your interest, at your cost, even if you bought at foreclosure of a more senior lien.
The issue with Shorting IRS liens tends to be the collectibility of the taxpayer. See forms 433 a and 433 b.
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