The IRS announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgage loans or the sale of a home. Under the new process, taxpayers or their representatives (such as their lenders) may request that the IRS make a tax lien subordinate to the lien to be created by the lender refinancing or restructuring a loan. Also, taxpayers or their representatives may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien, if certain conditions are met. The IRS states that the process to request a discharge or a subordination of a tax lien will take approximately 30 days after the submission of the completed application, but that it will work to expedite requests. Click here for more information.
Alert December 30, 2008