Clearing up an IRS and Franchise Tax Board Lien on a CA Property
2 Replies
James Peters
from Thousand Oaks, CA
posted over 3 years ago
So this discussion is not about investing in tax liens, but I thought the community here might be able to help. I have been spending the last 3 years cleaning up a mess that was made of my grandmother's estate and this is the latest development.
I have a property in Long Beach, California that was my grandmother's. I am trying to tap some of the equity so I can turn the property into a rental that will produce some income for my father (he is currently living there, but in the process of moving him) who is not physically well.
The property has a mortgage with 195k still owed, the property taxes are up to date, and is valued in the high 500 to low 600k range.
In the process of trying to tap some of the equity I discovered that there is a federal and state tax lien totaling about 70k. Apparently this was filed in the middle of 2014. My father states that he never saw anything. He also did not file taxes for my bedridden grandmother the last 5 years of her life.
I am currently in contact with the fed and the state and getting them the paperwork they need to see that I am the executor of the estate.
I am looking for any advice from anyone who has dealt with this? This is the latest in a long line of things I have been cleaning up and looking forward to hearing from the BP community for any guidance or advice.
Thanks!
James
Josh Carr
Wholesaler from Lehi, UT
replied over 3 years ago
@James Peters The IRS for the federal lien must be handled with the process of typing a letter and sending it to the technical advisory management group who handles the releasing of the IRS liens. Once you have done the paperwork the Federal or IRS lien group will ask you for a monetary amount or work something out with you. Essentially you will be asking them to release their right to redeem. As far as the State lien you will have to go the revenue department for the state of CA and see what is required for them to release their right to redeem. It's a process no doubt.
James Peters
from Thousand Oaks, CA
replied over 3 years ago
Thanks @Josh Carr . Since no taxes were filed for my grandmother from 2009 till 2014 I was told to see what the fed and states were using to determine their tax bill. The house was a total mess and I have found documents in random places throughout the house. I am not sure if the lien will compromise since there is equity in the house.