IRS - Negotiating - Posted by Marg

Posted by Rob FL on November 21, 1998 at 15:58:05:

In the title business, I have seen the IRS do partial releases of federal tax liens on a specific piece of property before. I would assume they would only do it if the taxpayer had other signifcant property for the IRS to recoup the lien. Call the IRS and ask them

IRS - Negotiating - Posted by Marg

Posted by Marg on November 20, 1998 at 20:49:18:

I was told as an investor you can negotiate with the IRS for a deal on a house in foreclosure. An investor I know , said he had negotiated a 400k lien to 10k and the lien was taken off the house and put on the owner. Has anyone heard of this before, I am one that always backs off from them.

“Offer and Compromise” - Posted by Randy

Posted by Randy on November 23, 1998 at 07:31:49:

Submit an “Offer and Compromise”, depending on the structure of the deal, and the local agent you’re working with you can get the property released. I have gotten a conditional release of Federal Tax Liens. Conditional meaning the property was released not the taxpayer.

The taxpayer MUST be completely divested from the property; the “Offer and Compromise” was based on the taxpayer’s equity in the property. In this case the equity was calculated by subtracting the first mortgage (which superceded the tax liens) from the county assessor’s tax value. Not the fair market value. The numbers looked something like this:

Federal Tax Liens $50,000 +
Market Value: $62,000
County assessed value: $36,900
First mortgage: $32,400
Owner equity: $4,400

Offer accepted by the service: $4,400

All tax liens were released property purchased for $36,900