IRS to Expedite Tax Lien Relief for Homeowners
Homeowners who are attempting to refinance their mortgage to get lower rates or who are selling their home in a short sale often face difficulties in completing the transaction because of the tax lien. In such cases the IRS is often willing to subordinate the lien, meaning the lien will take a lower priority, and this is often enough to facilitate a refinance. The IRS can also remove or discharge a lien depending on the circumstances.
Lien subordination or removal can take up to 30 days to complete. The IRS announced that the agency is trying to speed up the time is takes to discharge or subordinate tax liens. This will provide welcome relief to homeowners who are trying to restructure their mortgage or sell their property.
The last time I requested a discharge of a tax lien, was a few months ago when a client's mom was trying to sell a tract of vacant land. Everything was ready to go until they discovered a tax lien on the property. It turned out to be a tax lien for someone else with the same name as the mom. And it still took the agency just about 30 days to research the matter and remove the lien. So not all lien removals involve issues of unpaid taxes. Sometimes it involves people with the same name.
To request removal of a tax lien, you'll want to refer to Publication 783 (pdf, 4 pages).
To request subordination of tax lien, you'll refer to the procedures in Publication 784 (pdf, 2 pages).
Your tax accountant can help you decide which procedure will work better for you. You can also call the IRS which has lien departments throughout the United States. You can find contact information for the department closest to where you live in Publication 4235 (pdf, 2 pages).
Related information: Foreclosures and short sells can lead to canceled debt income
Comments
OK so no rmd is required in 2009,, which would have been the 1st year I would have been requided to take one. What happens in 2010 do I have to take 2 or does the IRS adjust the age table to 71 1/2 age for the first rdm to be taken.I WOULD BET NO ONE KNOWS YET INCLUDING THE IRS.
The new law doesn’t change how RMDs are calculated. So my guess is that the RMD tables will remain unchanged and that you won’t need to take a double distribution in 2010. In other words, I think the math will remain unchanged, with the exception that the minimum distribution will be zero by law instead of the mathematically calculated RMD. Here’s a summary of the new law from the professional reference TheTaxBook, “No RMD is required for calendar year 2009 from IRAs and employer-provided qualified retirement plans that are defined contribution plans (including 401(k) plans). The next RMD is for calendar year 2010. This relief applies to lifetime distributions to employees and IRA owners and after-death distributions to beneficiaries.”
For the first time in 4 years I have been asked to fill out a W-9 form. I am disabled on SSD and SSI and do not file taxes as my income does not warrent doing so. I make exactley $600 per year extra in speaking engagements. Will the W-9 be filed with IRS or is this just to be kept in the companies file? Or – will I now have to file taxes?