The Internal Revenue Service is relaxing how it handles tax liens on property to allow home owners with outstanding liens to refinance mortgages or sell homes without a lien delay or a block on the process.
Home owners with a lien on the property can ask the IRS to make its lien secondary to that of the lender that’s refinancing or restructuring the loan. If the property is being sold, the homeowner can ask the IRS to “discharge” its claim, which clears the home from the lien. The action does not eliminate the tax debt, however.
There are more than 1 million federal tax liens outstanding that are tied to real estate and personal property, according to IRS Commissioner Doug Shulman. He said IRS officials would respond more quickly to taxpayer requests to clear liens. Previously, clearing a lien took about 30 days after the request was filed. Shulman was unable to say specifically how much faster the IRS will now respond.
Main Line and Beyond 
Posted on December 17, 2008
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