[WSBARP] [WSBAPT] Federal Tax Lien

[Rod Harmon]

I have found the IRS to be diligent about recording a release once payment is made.  So, if there is no release it is highly likely there has been no payment.
I don't think the IRS can re-file anymore.  So, waiting out the two years is not a bad idea.
IRS may not be willing to talk to you about someone else's tax debt until you fax them a lot of paperwork to paper their file showing your connection to the property.
I would just keep mum and wait out the two years.

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
         P.O. Box 1066
      Bothell, WA   98041
     Tel:   (425) 402-7800
     Fax:  (425) 458-9096
    www.rodharmon.com<http://www.rodharmon.com>
   rodharmon at msn.com<mailto:rodharmon at msn.com>





From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of ron at housh.org
Sent: Wednesday, June 13, 2018 11:22 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] [WSBAPT] Federal Tax Lien

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:
     *   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?
     *   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:    ron at housh.org<mailto:ron at housh.org>

Mount Vernon Office:
21411 Bluejay Place
Mount Vernon, WA 98274
Phone:  206-235-2459
Email:   ron at housh.org<mailto:ron at housh.org>


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