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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4507
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have a individual tax payer MFS has a lien on the sale of

Customer Question

I have a individual tax payer MFS has a lien on the sale of his home that he shared with his spouse. The IRS put a lien on house. Tax debt is only taxpayer due to MJS. The title company has been holding 434,000 of proceeds until I have lien removed. This has been in negotiation with IRS for 4 years now. Offer 656L was processed due to huge error in 2005 return. They finally agreed to my assessment and removed all tax liability. Problem this backed up from 2004 to 2012. They took the offer payment and applied to other years resulting in 88 to 90% of tax interest and penalties. (ex: 106,000 payment on 60,000 Liability)
1.) What is the most can the IRS take on original tax liability, when they took more than 1 year to process 656L and attempts to settle estate?
2.) What section can I cite for the Title company to only pay the IRS half of the proceeds of sale? If the liability is only on 1 spouse MFSeparate liability?
Submitted: 8 months ago.
Category: Tax
Expert:  PDtax replied 8 months ago.
Hi from Just Answer. I'm PDtax.This is pretty involved, and I think you might want more time than the deposit warrants.I'll post an offer for 1/2 hour of professional time to review more facts and assist.
Customer: replied 8 months ago.
I have to write a letter to the Title company for them to pay the amount due to IRS. I need a section number to site so she doesn't send the whole 434,000. I already paid IRS 124,900 of the half of proceeds. The Title company is going to audited and is worried about holding trust money over a year. The IRS instructed me to hold off, but they are taking too long.
I just don't want her to send more than half of proceeds of sale. I gave her updated transcripts that shows the taxpayer only owes 44,000 more, but Title company wants a letter of instruction from me. I spent 4 hours on hold and can't get through to Lien department. I only have till 12/1 with Title Company. Is it 69.00 additional from regular fee?
Expert:  PDtax replied 8 months ago.

I'm unable to post my offer for the phone call and research time. I'll ask site admin to assist.

Customer: replied 8 months ago.
You have not answered my question.
Expert:  PDtax replied 8 months ago.

I posted an Offer to assist this morning. Please advise if you still need assistance. Your situation will require substantial time to review all the facts and offer resolution, so my Offer to assist was made in that light.

Please advise by 5 PM EST today.