If you have a tax lien on your home, it adds a level of complexity to the transaction that wouldn’t be there if you didn’t have the tax lien. The tax lien is going to have to be dealt with one way or another.
If the tax lien is an amount that would be satisfied by the sales price, that’s very straightforward. The taxing administration that had the tax lien would just stand in your shoes as the seller of the home at closing. So any money that you would receive up to the amount of that tax lien, would end up going over to the taxing administration, either the IRS or state department of revenue.
If you owe more than the amount of equity you were to receive at closing, then something has to give and that is a situation where you would need the IRS or state department of revenue to subordinate their lien or partially discharge their lien for you to be able to sell the house. That is the level of complexity that is going to cost you about 30-45 days to get approval either from the IRS or state department of revenue for you to close on your home.
Basically what you are doing is saying, “I’m going to sell this home, you are going to get all the money for it. The money that you will receive isn’t enough to fully satisfy my tax debt. But this is as good as you can get right now because we can only sell the home for so much and I was only set to receive so much out of the real estate closing.”
Dutton Legal Group – Indiana’s Tax Resolution Law Firm
The Dutton Legal Group helps the people and businesses of Indiana navigate ever-changing State and Federal tax codes. Our goal as experienced tax attorneys is to assist you in finding an immediate, cost-effective answer to your tax challenges. We provide a variety of tax services from balance resolution and return preparation to wage garnishment relief and audit assistance. Make Dutton Legal Group your next call at 1-800-334-0255 or send an email to request a free consultation. Trustworthy and affordable, for over 15 years.