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if a home has an IRS tax lien and the owners file bankruptcy

Customer Question
(chapter 7), do the homeowners...
if a home has an IRS tax lien and the owners file bankruptcy (chapter 7), do the homeowners still need to submit a release of lien from the IRS, or would the bankruptcy release the owners from the debt obligationi but there would still be a lien against the home's title?
Submitted: 5 years ago.Category: Tax
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1/2/2012
Tax Professional: Richard, Tax Attorney replied 5 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,790
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Good morning. The bankruptcy does not release the IRS lien against the house and in most cases the bankruptcy will not release the taxpayer's obligation to the IRS unless the IRS debt meets certain requirements.

 

 

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Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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Customer reply replied 5 years ago
what requirements would the homeowners need to meet in order to be released from obligation to the IRS?
Tax Professional: Richard, Tax Attorney replied 5 years ago

It must meet the following 5 requirements:

 

  • The due date for filing a tax return is at least three years ago.
  • The tax return was filed at least two years ago.
  • The tax assessment is at least 240 days old.
  • The tax return was not fraudulent.
  • The taxpayer is not guilty of tax evasion.
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