Federal Tax Lein question?

[Beachboy]

Hi Jr,

Thanks again for doing this q & a for us list subscribers. I had a question about Federal Tax Leins? I understand that they survive the trustee auctions, but what if the tax lein has a different address on it, such as an old address but still has the property owners name on it? Would the lein just be tied to the old address, or would it also be tied to the future addresses of the debtor?

Also, has anyone had any experience negotiating a payoff with the IRS on one of the trustee purchase houses? If so, how did it go?

:cool:

[George Roddy, Jr.]

BB,

IRS liens are extinquished on the steps, BUT the have a "right to seize" policy (I go over this in my CASH IN, HTB & Title courses). IRS liens are "general liens" which means, it (IRS lien) clouds/encumbers all addresses the tax payer owned at the time the lien was recorded in the county clerk records.

Hope to see you soon!

George

[Scott Phillips]

Hi Greorge,

I was told today by a more seasoned investor at the trustee auction that IRS leins give the IRS 90 days option to seize the property from when they are notified about the trustee sale. The 90 days notice needs to verified with the trustee and/or attorney handling the case. If they seize, you get your money back with interest. Does that sound right?

Thanks,

Scott

[George Roddy, Jr.]

Scott,

IRS code requires the lender to notified (in writing) the IRS department at least 25 days prior to the courthouse auction. If notified, the IRS has up to 120 days to excercise their right to "seize" the property. If they seize, the have to pay the courthouse auction investor 2 things: price paid on the steps and 6% annualized intereste on the price paid on the steps.

If the IRS was not notified 25 days in advance, the IRS has the remaining time of the lien to excercise their right to seize and NOT pay the investor their money.

Absolutely, you need to verify that the lawfirm / trustee notified the IRS in the required timeframe.

George

[Scott Phillips]

George,

Thanks for clearing that up. Assuming the IRS was notified at least 25 days prior to the auction and did not exercise their right to seize in the following 120 days, does the IRS lein go away or does it still have to be satisfied?

Thanks again,

Scott

[George Roddy, Jr.]

Scott,

Yes and No. The IRS lien will detach from the property you purchased, but the IRS liens still stays against the taxpayer (former owner) and "clouds" any other properties they might currently own.

George Jr.