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Short Sales and IRS Tax Liens

According to Darrell Walker of Keller-Williams Realty Las Vegas, if the tax lien on the property is unenforceable, meaning, the IRS can not collect because the value is not there, the IRS can issue a release of the tax lien. The purpose of attaching the tax lien to the property is, if the property is sold any proceeds would payoff the IRS, as well as the lien holder. However, if the property is sold short, then the IRS is out of luck and can release the tax lien. The person is still held responsible for the tax liability. If they have other properties, the IRS could and probably would transfer the tax lien [see: IRC 301.63251 Release of lien or discharge of property]. I recommend you consult with a tax attorney.

Posted by Steven Kitnick on 07/03/2008 07:34 PM

Comments (2)

short sales, ask steve

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2 Comments on Short Sales and IRS Tax Liens

JUL

2008

Hi Steve,

I have a sale that was not a short sale. It's a total foreclosure with the property in the bank's name, and because of an IRS lien we can not close until the full 120 days has past and they release the property. It is set to close August 16th. We contacted the IRS and the seller (bank) filled out the forms to get it released and the IRS told the bank they would "review it in maybe 60 days." This is so stupid! The prior owners are long gone and we have to sit on this until the lien runs out. The IRS has no reason to sit on this! They cannot win or get blood out of a turnip at this point. FYI, these things are out there today.

"CJ" Barnes, ABR-ASR-CRS

Real EstateBy Design

8170 W. Sahara #200

Las Vegas, NV 89117

Direct phone: 702-326-1483

Fax: 702-838-0753

Websites: http://www.cjbarnes.com

AUG

2008

There is no worse a feeling than owing the IRS come tax season. The below website offers a free consultation at absolutely no cost. I found it very helpful. They need you to fill up a simple registration form for availing free consultation.

http://411-tax-relief.pinurl.com

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Steven Kitnick

Las Vegas, NV

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Steven Kitnick Seminars, LLC

Address: c/o 1903 S. Jones Blvd., # 100, Las Vegas, NV , 89146

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