The Problem
A federal tax lien clouds title on all real property in Sarasota and Manatee Counties. Title companies will not issue clear title insurance until the lien is addressed. This can derail a real estate closing, costing the seller the deal and potentially the buyer's patience. In Sarasota's competitive real estate market, delays caused by tax liens can mean losing a buyer.
Lien Discharge for Property Sales
The IRS can discharge a lien from specific property to allow a sale to proceed. You apply using Form 14135, providing details about the property, the sale price, and the proposed distribution of proceeds. The IRS will generally agree to a discharge when the sale proceeds will be used to pay down the tax debt or when the IRS interest in the property is nominal.
Subordination for Refinancing
Sarasota homeowners who need to refinance can request the IRS subordinate its lien to the new mortgage. The IRS agrees when subordination ultimately facilitates collection, such as when refinancing reduces monthly payments and frees up cash flow for tax debt payments.
A tax lien does not mean you cannot sell your Sarasota property. It means you need a tax attorney who knows the discharge process.