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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>Client acquired property via a sheriff’s sale.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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].<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Questions for anyone familiar with IRS practices with regard to recorded tax liens:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><ol style='margin-top:0in' start=1 type=1><li class=MsoListParagraph style='margin-left:0in;mso-list:l0 level1 lfo1'> 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?<o:p></o:p></li><li class=MsoListParagraph style='margin-left:0in;mso-list:l0 level1 lfo1'>If the tax debt has not been satisfied does interest run on the debt at 12% and do any penalties also accrue?<o:p></o:p></li><li class=MsoListParagraph style='margin-left:0in;mso-list:l0 level1 lfo1'>The identified debt is $12,000; therefore, I suspect my client may ask:<o:p></o:p></li><ol style='margin-top:0in' start=1 type=a><li class=MsoListParagraph style='margin-left:0in;mso-list:l0 level2 lfo1'>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?<o:p></o:p></li><li class=MsoListParagraph style='margin-left:0in;mso-list:l0 level2 lfo1'>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?<o:p></o:p></li></ol></ol><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Thanks in advance for any insights.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Ron<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><b><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:red'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:red'>I AM TYPICALLY IN THE SEATTLE OFFICE ON TUESDAY AND THURSDAY AND IN THE MOUNT VERNON OFFICE ON MONDAY, WEDNESDAY AND FRIDAY <o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Ronald G. Housh, P.S.</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Attorney at Law</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Seattle Office:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>1420 Fifth Avenue, Suite 3000</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Seattle, WA 98101-2393</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Phone: 206-381-1341</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Fax: 206-464-0461</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Email: </span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><a href="mailto:ron@housh.org"><b><span style='color:green'>ron@housh.org</span></b></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Mount Vernon Office:</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>21411 Bluejay Place</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Mount Vernon, WA 98274</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Phone: 206-235-2459</span></b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:green'>Email: </span></b><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><a href="mailto:ron@housh.org"><span style='color:green'>ron@housh.org</span></a><o:p></o:p></span></b></p></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>