Have a Tax Question? Ask a Tax Expert
If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options. Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. Taxpayers or their representatives may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.
Here is a link to a page on the IRS website which gives more details and tells you how to apply for the certificate of subordination.
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You said you sold your other home with no issues.
So what property is it that has a lien on it?
If you already purchased a new home, I assume you had the mortgage in place prior to being able to purchase it, so I am confused here as to your exact situation?
So is this lien against your new home?
I am still not clear on how you got in to the new home without already having an approved mortgage?
Unfortuantely the only thing that the IRS would do in this case is to possibly agree to make the lien secondary to the lender as explained in the original post. Other than that option, you would need to pay off the amount that is due to the IRS, because they will not totally release the lien until this debt has been paid or until you can show otherwise that the amount is not owed.