The primary focus of my firm is tax representation in Parkchester, NY. The taxpayer who has a lien on property, such as a house, could have the house discharged from under the tax lien. The tax lien is basically a claim made by the IRS for the property in an effort to collect on tax debt. Since the taxpayer has an asset (house), the IRS may have first claim on the asset above all other creditors. Discharging the asset can be accomplished through the sale of the house to satisfy the tax debt. The tax lien would not be discharged since it’s the claim on assets especially if by selling the house it would fall short of satisfying the tax debt. However, if the tax debt is satisfied through the sale of the house, then the lien would be released.
Taxpayers can use the equity to fully pay the tax debt to the IRS. This would require payment via a certified check to the IRS and in turn the taxpayer would receive a payoff letter from the IRS and subsequently release the tax lien. If there isn’t enough equity in the house to satisfy the tax debt, the IRS could still issue a lien discharge so that the taxpayer could take good title with proof that all of the equity will go to pay the IRS. Proof of sale proceeds to the IRS via a HUD statement is needed along with real estate contract, bank appraisal of the property and certified payment for the lien to be released.
If you or anyone you know has a tax lien on a home and need to discharge the asset to pay the debt, feel free to contact me at (917) 708-1097 or via email at millertax.ea@gmail.com.
Miller Tax & Advisory Services
P.O. Box 967
Parkchester, NY 10462
Ph. (917) 708-1097
Comments(0)