According to the IRS, if the home is being sold for less than the lien amount, the taxpayer can request the IRS discharge the lien to allow for the completion of the sale. Taxpayers or lenders also can ask that a federal tax lien be made secondary to the lending institution’s lien to allow for the refinancing or restructuring of a mortgage. The IRS currently is working to speed requests for discharge or mortgage restructuring to assist taxpayers during this economic downturn. To assist struggling taxpayers, the IRS plans to significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances. The IRS plans to review the results and impact of the lien threshold change in late 2018. Also, the IRS is making other fundamental changes to liens in cases in which taxpayers enter into a Direct Debit Installment Agreement (DDIA). Additionally, the IRS will modify procedures to make it easier for taxpayers to obtain lien withdrawals. Liens will now be withdrawn once full payment of taxes is made upon the taxpayer’s request. In some cases, the federal government will issue a tax levy—a legal claim made against the property that grants the government authority to seize the property to satisfy the debt. At this stage, you could also lose wages, vehicles, and other personal property as a means of satisfying your debt. In some instances, the IRS will let other creditors take their debts before the IRS as they may also make a compromise that allows the taxpayer to pay off the debt in small installments.
105
Powered by FlippingBook