Author: Kelly Coughlin

Selling or Refinancing when there is an IRS Lien

https://www.irsvideos.gov/Business/IRSLiens/LienSeg1_3   As a property owner you have many obligations.  If one of these involves having a Notice of Federal Tax Lien filed against your property, the IRS has some important tax information for you. You may have to submit one of two application forms with the IRS, depending on your lien situation.  To help you understand the process, we’ll go line by line through the forms, giving you tips and telling you how to avoid errors along the way. First, the critical question: Are you selling, refinancing, or using your property as collateral for a loan that won’t...

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Segment 3: Supporting, Completing, and Submitting your Application

https://www.irsvideos.gov/Business/IRSLiens/LienSeg3   Section 8 for either application form asks for a description of your property, which could be either real estate or personal property such as art work, a boat, a plane, or your business receivables.  Don’t forget to provide the property address. Now time for another tip …. If the property is real estate, check the “attached” box and include a legible copy of the deed. For Section 9 of form 14135, when you are selling property, the IRS requires a professional appraisal, which is generally part of the closing package and a second type of value estimate....

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Segment 2: Describing Your Discharge or Subordination

https://www.irsvideos.gov/Business/IRSLiens/LienSeg2   Section 7 asks for either your basis for discharge or subordination.  The IRS will contact you if there are questions or your basis needs to be changed. Let’s start with discharge. Check one of the following boxes on form 14135 that best describes your situation: If you own more property than is being sold and the property not being sold is worth twice your debt to the IRS, you would need to do three things. First, check the top box in section 7 – 6325(b)(1) Second, go to the bottom of Section 8, check the “attached box”...

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Segment 1: Applying to the IRS for a Lien Discharge or Subordination

https://www.irsvideos.gov/Business/IRSLiens/LienSeg1   As a property owner you have many obligations.  If one of these involves having a Notice of Federal Tax Lien filed against your property, the IRS has some important tax information for you. You may have to submit one of two application forms with the IRS, depending on your lien situation.  To help you understand the process, we’ll go line by line through the forms, giving you tips and telling you how to avoid errors along the way. First, the critical question: Are you selling, refinancing, or using your property as collateral for a loan that won’t...

Read More