IRS Tax Lien Question

IRS Tax Code | April 14, 2002 | UnBubba

[UnBubba]

An IRS tax lien was placed on an individual's primary residence based upon a 1984 tax return issue. The IRS tax lien is still attached to the property today.

It is my understanding that a tax lien must expire after 10 years from assessment date (the IRS tax liability statute of limitations). If this is true, how can I get this expired lien removed from the property? I am told the IRS does not let the property owner know about this law (it figures).

For the record, no waiver of this time limitation was ever signed by the homeowner.

Any help on this matter would be appreciated.

[UnBubba]

Thanks, in advance.

[jlogajan]

The "assessment" date is not necessarily the year the tax was due. If there was a a several year period before the IRS discovered a discrepency, and then a tax court date, I believe the assessment is dated from the day the tax court finds in favor of the IRS. Then it is 10 years from then.

[jlogajan]

Also, on the notice of lien sent to the party, it will say that the lien expires in 10 years and no notice will be sent -- but that the notice itself is proof of revocation of lien after said date.

[UnBubba]

Your posts were helpful and to the point.

[Cloud William]

Call the county clerk and recorder's office and ask to speak to someone about cancelling a lien. They get those questions every day and can tell you what must be filed and what the cancellation costs will be (usually negligable). If they do not automatically issue a certificate of cancellation, ask if they offer one at additional cost - it's usually just a few bucks more. Whichever county the property is located in... that's the place to call.

[TheCPA]

The IRS generally has 10 years to collect the tax after it has been assessed (Code Sec. 6502). You can request a transcript of your account for the tax year(s) in question, and the transcript should show the date the tax was assessed. A statutory lien attaches to a taxpayer's property when he or she owes taxes even if a formal lien is not filed for public record (Code Sec. 6321).

Code Sec. 6322 provides that the lien lapses when the lien becomes unenforceable because of a lapse of time--10 years after assessment. The IRS should issue a release of the lien within 30 days after it becomes unenforceable (Code Sec. 6325). If the IRS has not released the lien within 30 days, write a letter to the District Director (at the address of the IRS District in which you live), ATTN: Chief, Special Procedures. Attach a copy of each lien you want released and state why (10 years have elapsed since the date the tax was assessed). You might also want to attach a transcript of your account that proves the date the tax was assessed. Be sure to provide the names, address, and social security numbers of the taxpayer (Temp. Reg. Sec. 401.6325-1(f)).

[TheCPA]

By the way, a tax lien is not placed just upon a residence. It is placed on all the property a taxpayer owns.

[bybybill]

It also depends on what type of tax is owed. 941, payroll tax , is tougher to wipe out. One of their tricks is to send a demand letter along with an offer to negotiate if you waive the ten year rule

[UnBubba]

Thanks for your help.

[firewalk]

bumped for reading later

[UnBubba]

To the top. Bump...

[UnBubba]

Hi there. I happen to be reviewing some of my old posts and would like to comment about this one.

I was able to save my client over $45,000 in IRS tax liens based upon some of the issues discussed above. If anyone is interested in learning more about this please reply.

GXK

[Matchett-PI]

In Florida an IRS lien expires 7 years from the date of it's recording unless it's re-recorded before the 7 years is up. If it's re-recorded, it's good for another 7 years, etc., etc.

Find out what the statute says for the state in which you live. Even if a lien shows up in the public records, it doesn't count against you if it's out-dated.

[UnBubba]

Thank you for your response. In NY the lien expires one day after 10 years from the lien record date.

At this time you get the great pleasure of giving the IRS the finger.

[Matchett-PI]

"Thank you for your response."

You're welcome, but I didn't realize until after I posted it that you origionally asked the question in 2002. LOL

[UnBubba]

Time keeps on turning, turning...