Have a Tax Question? Ask a Tax Expert
Hi. My name is ***** ***** I will be happy to help you.
Until the house is auctioned and sold IRS lien will not be satisfied. The bank is the first creditor, so until the bank loan is satisfied, IRS lien will not be paid off. The lender/bank will not settle with the the IRS until the lender is sure that his own loan is settled first.
If you believe that the debt is result of incorrect reporting, you can amend your 2008 return fix it, there's no statute of limitation for correcting/amending a return. If you filed a joint return in 2008, the debt is considered joint, regardless whose income generated the tax liability.