[WSBARP] [WSBAPT] Federal Tax Lien

[ron at housh.org]

Client acquired property via a sheriff's sale.

 

After the sale, the client obtained a Title Guaranty that identifies a
recorded Notice of Federal Tax Lien.  1040 taxes owed by the former owner of
the property for 2006.  The Notice states that the last day for refiling is
3/9/2020 [which is 10 years following the recording of the Notice of Federal
Tax Lien].

 

Questions for anyone familiar with IRS practices with regard to recorded tax
liens:

 

1.	If the tax debt is satisfied, does the IRS generally record a
release or simply await the expiration of the 10-year period without any
filing/re-filing?
2.	If the tax debt has not been satisfied does interest run on the debt
at 12% and do any penalties also accrue?
3.	The identified debt is $12,000; therefore, I suspect my client may
ask:

a.	If we do nothing for 2 years and there is no re-filing, then the
lien is extinguished and title is clear of that lien - correct?
b.	If so, do we flag the status of this unpaid debt by calling the IRS
and inquiring if the debt has been paid?  In other words, if we call and
learn that the debt has not been paid, is the IRS then more inclined to
start a foreclosure proceeding notwithstanding the relatively small amount
of the debt?

 

Thanks in advance for any insights.

 

Ron

 

 

I AM TYPICALLY IN THE SEATTLE OFFICE ON TUESDAY AND THURSDAY AND IN THE
MOUNT VERNON OFFICE ON MONDAY, WEDNESDAY AND FRIDAY 

 

Ronald G. Housh, P.S.

Attorney at Law

 

Seattle Office:

1420 Fifth Avenue, Suite 3000

Seattle, WA 98101-2393

Phone:   206-381-1341

Fax:        206-464-0461

Email:     <mailto:ron at housh.org> ron at housh.org

 

Mount Vernon Office:

21411 Bluejay Place

Mount Vernon, WA 98274

Phone:  206-235-2459

Email:    <mailto:ron at housh.org> ron at housh.org

 

 

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