- Days left

The Internal Revenue Service recently announced a program to speed lien relief for homeowners trying to refinance or sell. While it won't get anyone out of their tax bill or erase a federal lien on their home, it's at least some help if they're trying to sell their home in this tough housing market.

Requesting the IRS to "discharge its claim" doesn't eliminate the lien, but moves it to a different property, such as a car or the taxpayer's wages. Somehow, the IRS will get its money.

The IRS is offering to speed up the process -- it usually takes about 30 days -- to make sure the sale or refinance is completed in a timely manner, and so no one gets kicked out of their home as a result of the lien, according to Marketwatch. Taxpayers can also request that the IRS make a tax lien secondary to the lien by the lender that is refinancing or restructuring a loan. They can also request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.


The IRS assesses tax liens on the property of taxpayers who haven't paid and haven't responded to requests for payment. The IRS reports that there are more than 1 million federal tax liens outstanding tied to both real and personal property. It issues more than 600,000 federal tax lien notices annually. A good way to avoid a lien is to contact the IRS if you can't pay your bill.

"We don't want the IRS to be a barrier to people saving or selling their homes," said Doug Shulman, IRS commissioner, in a press release. "We want to raise awareness of these lien options and to speed our decision-making process so people can refinance their mortgages or sell their homes."

"We realize these are difficult times for many Americans," Shulman said. "We will ensure we have the resources in place to resolve these issues quickly and homeowners can complete their transactions."

Aaron Crowe is an unemployed journalist in the San Francisco Bay Area. Read about his job hunt at www.talesofanunemployeddad.blogspot.com


Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Economics 101

Intro to economics. But fun.

View Course »

TurboTax Articles

Employer Sponsored Health Coverage Explained

The Affordable Care Act, also known as Obamacare, is simpler than some people may give it credit for. The basic rule to remember is that everyone must carry Minimum Essential Coverage (MEC) or pay a penalty. Employers with 50 full-time employees or more are obligated to sponsor plans for their workers to help them meet this requirement.

How to Report RSUs or Stock Grants on Your Tax Return

Restricted stock units (RSUs) and stock grants are often used by companies to reward their employees with an investment in the company rather than with cash. As the name implies, RSUs have rules as to when they can be sold. Stock grants often carry restrictions as well. How your stock grant is delivered to you, and whether or not it is vested, are the key factors when determining tax treatment.

What is a Schedule Q Form?

The Internal Revenue Service (IRS) has two very different forms that go by the name Schedule Q. One of them is for people who participate in certain real estate investments; this is known as a Form 1066 Schedule Q. The other Schedule Q deals with employer benefit plans. It?s not something an individual taxpayer would normally have to deal with, though a small business owner might need it.

Incentive Stock Options

Some employers use Incentive Stock Options (ISOs) as a way to attract and retain employees. While ISOs can offer a valuable opportunity to participate in your company's growth and profits, there are tax implications you should be aware of. We'll help you understand ISOs and fill you in on important timetables that affect your tax liability, so you can optimize the value of your ISOs.

Add a Comment

*0 / 3000 Character Maximum