Selling your house with a Tax Lien – It can be done!

Michelle Divan, EA
Michelle Divan, EA

Hi – Michelle Divan here.  I represent taxpayers in Denver, CO – and nationwide – who cannot pay their taxes or have back tax debt.  Each month I grab a topic that is germane to taxpayers that have debt or issues with the IRS.  Last month I focused on Notice of Deficiency letters – the dreaded 90-day letter, and you can see my historic bloc posts here.  This month I am focusing my attention and education on people who have tax liens and how to deal with them.

You have a tax lien on your house…that means you can’t sell until you get that debt paid, right?  Not exactly.  The purpose of an IRS tax lien is to protect the government’s interest in outstanding debt.  Many homeowners are sitting with a tax lien on outstanding debt, and think they need to pay that debt and get the tax lien cleared BEFORE they can list their home. That is not the case, there are specific steps that can be taken for a homeowner to sell their home, settle the debt to the mortgage company and the IRS, and release a clear title to the new buyer

Many homeowners in Denver, CO are sitting on gold mines in equity and want to take advantage of the real estate boom.  With a tax lien in place, it will be important to take a couple steps as you list your property to tell the IRS what will be done with the equity in the home.  There is a form to file with the IRS, to make specific allowance when you have equity to fully pay the IRS debt, partially pay the IRS debt, or what to do if there is no equity in the sale.  All of this can be handled by a tax resolution professional.  Remember, the IRS is looking to protect is position in a debt, not prevent the sale of your assets.

Are you or someone you know in this situation – or have an outstanding tax issues that you want solved?  Contact me today and let’s get working on this.  I can be reached at 303-250-0122 or [email protected]