Need to Sell or Refinance a home with IRS Tax lien in Minnesota?

Eagan MN

21 March, 2021

11:43 PM

Description

Most people assume that they cannot sell or refinance a home with a tax lien or judgment unless the underlying debts are paid in full. A home can be sold or refinanced when tax liens and judgments have been filed against a property even if the debts are not paid in full. I represent taxpayers in Minneapolis, Minnesota and all the 50 States in the United State before all administrative levels—examination, collection, and appeals—of the Internal Revenue Service (IRS)and Minnesota Department of Revenue(MNDOR) and Minnesota Department of Revenue(MNDOR).  I often work with sellers, real estate agents, and real estate attorneys to resolve tax lien and judgment issues so that homes can be successfully sold. Here are things to consider when selling a home with a tax lien or judgment. An IRS or Minnesota Department of Revenue tax lien is created automatically whenever a taxpayer has an outstanding tax debt. However, the tax lien doesn’t become a matter of public record and filed at a local courthouse until certain requirements are met regarding the age and amount of the tax debt. An IRS or MNDOR tax lien attaches to property owned by the taxpayer and will prevent the successful sale or refinance of a home until the tax lien is removed. How to Get an IRS or MNDOR Tax Lien Removed Assuming the IRS or MNDOR tax lien was filed, there are a few ways to get a tax lien removed enabling the sale or refinance of a home. Essentially, a seller must be able to demonstrate that it is in the best interest of the United States Government or the Minnesota Department of Revenue(MNDOR)   to remove the lien. This is typically achieved when the lien withdrawal or release would enable funds to be obtained through refinance or sale of the property so that proceeds can be paid towards the tax debt. In many cases, the debt may not be paid in full and in some cases not at all. Note that the request to have a tax lien withdrawn generally takes at least 30 days; therefore, it is important plan accordingly.  You can also remove an IRS lien through Discharge or subordination of the tax liens. Please feel free to contact me if you or someone you know in the Twin Cities Metro area needs help with resolving IRS or MNDOR tax lien issues. I can be contacted by phone at (612)516 5878 or you can email me directly at [email protected]