Instructions On How To Apply For A Certificate Of Discharge Of Property From Federal Tax Lien (Page 2 of 4) in pdf

tion/payment, I waive the option to have the

payment treated as a deposit under section

9. Give any other information that might, in your

6325(b)(4) and the right to request a return of

opinion, have bearing upon the application, such

funds and to bring an action under section

as pending judicial actions.

7426(a)(4).”

10. The Technical Services Group Manager may

13. Give the address and telephone number

request that you furnish additional information.

where you may be reached.

11. If you are submitting the application under the

14. Give the name, address and telephone number

provisions of section 6325(b)(3), dealing with

of your attorney or other representative, if any.

the substitution of proceeds of sale, attach a

copy of the proposed agreement containing the

15. If you have made an application under section

following:

6324(b)(4) and disagree with the Service’s

a. The name and address of the proposed

determination of the value of the government’s

escrow agent

interest, provide us with specific reasons why

you disagree with it’s determination.

b. The caption, type of account, name and

address of depositary for the account

16. Make the following declaration over your

c. The condition under which the escrowed

signature and title: “Under penalties of

funds are to be held

perjury, I declare that I have examined this

d. The conditions under which payment will be

application, including any accompanying

made from escrow, including the limitation

schedules, exhibits, affidavits, and statements,

for negotiated settlement of claims against

and to the best of my knowledge and belief it is

the fund

true, correct, and complete.”

e. The estimated costs of the escrow

Additional Information

f. The name and address of any other party

you and the Technical Services Group

Please follow the instructions in this publication

Manager determine to be a party to the

when applying for a Certificate of Discharge of

escrow agreement

Property from Federal Tax Lien.

g. Your signature, and those of the escrow

The Technical Services Group Manager has the

agent, the Technical Services Group

authority to issue a certificate of discharge of a lien

Manager and any other party to the escrow

that is filed on any part of a taxpayer’s property

agreement

subject to the lien. The following sections and

h. Any other specific information the Technical

provisions of the Internal Revenue Code apply:

Services Group Manager requests.

Section 6325(b)(1) – A specific property may be

12. As discussed below under “Additional

discharged if the taxpayer’s property remaining

Information,” making an application and deposit

subject to the lien has a Fair Market Value ( FMV )

(or providing a bond) under section 6325(b)(4)

which is double the sum of: a) the amount of the

provides a judicial remedy not available for an

liability secured by such liens, and b) all other liens

application and payment made under section

which have priority over the federal tax liens.

6325(b)(2). Therefore, unless the right to make

(FMV=(a+b)x2)

a deposit under section 6325(b)(4) is waived in

writing, an application made by a third party

Section 6325(b)(2)(A) – A specific property may be

claiming ownership of the property will be

discharged if there is paid, in partial satisfaction of

treated as one made under section 6325(b)(4),

the liability secured by the lien, an amount deter-

and any payment made will be treated like a

mined to be not less than the value of the interest

deposit under section 6325(b)(4).

of the United States in the property to be dis-

charged. In the case of entireties property sold by

If you are an owner of the property (other

the taxpayer or taxpayer’s spouse, the United States

than the taxpayer) and you wish to submit

must be paid one-half of the proceeds in partial

an application under section 6325(b)(2), you

satisfaction of the liability secured by the tax lien.

must waive the rights that would be avail-

able if the application were made under

NOTE: Because making an application and deposit

section 6325(b)(4). Add the following lan-

(or providing a bond) under section 6325(b)(4)

guage to the application immediately prior to

provides a judicial remedy not available for an

the declaration described in paragraph 15,

application and payment made under section

below: “I understand that an application and

6325(b)(2), owners (other than the taxpayer) wish-

payment made under section 6325(b)(2) does

ing to apply for a certificate of discharge under this

not provide the judicial remedy available under

provision must waive, in writing, their rights to make

section 7426(a)(4). In making such an applica-

a deposit allowed under Section 6325(b)(4) and to

file suit for return of the deposit or accepted bond

Instructions On How To Apply For A Certificate Of Discharge Of Property From Federal Tax Lien Page 2

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