Instructions On How To Apply For A Certificate Of Discharge Of Property From Federal Tax Lien (Page 2 of 3) in pdf

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

10. The Technical Services Group Manager may

discharged; if the taxpayer’s property remaining

request that you furnish additional information.

subject to the lien has a Fair Market Value

(FMV)

which is double the sum of the balance due:

all

11. If you are submitting the application under the

Federal Tax Liens,

all other liens.

(FMV=(a+b)x2)

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

the substitution of proceeds of sale, attach a copy

Section 6325(b)(2)(A) — If there is paid in partial

of the proposed agreement containing the

satisfaction of the liability secured by the lien an

following:

amount determined to be not less than the value

a. The name and address of the proposed

of the interest of the United States in the property

escrow agent;

to be discharged.

b. The caption, type of account, name and

Section 6325(b)(2)(B) — It is determined that the

address of depositary for the account.

interest of the United States in the property to be

c. The condition under which the escrow

discharged has no value.

funds are to be held;

d. The conditions under which payment will be

Section 6325(b)(3) — If the property subject to the

made from escrow, including the limitation for

lien is sold, and, under an agreement with the Internal

negotiated settlement of claims against the

Revenue Service, the proceeds from the sale are to

fund;

be held as a fund subject to the liens and claims of

the United States in the same manner and with

e. The estimated costs of the escrow;

the same priority as the liens and claims on the

The name and address of any other party you

discharged property.

and the Technical Services Group Manager

determine to be a party to the escrow

Section 6325(b)(4) — At the request of the non-

agreement;

taxpayer owner, a discharge will be issued on any

property subject to a lien. But the owner must deposit

g. Your signature, and those of the escrow

an amount equal to the value of the government’s

agent, the Technical Services Group

interest or furnish an acceptable bond in an amount

Manager and any other party to the

escrow agreement; and

subject to the government’s interest in the property.

h. Any other specific information the Technical

1. No payment is required for the issuance of a

Services Group Manager requests.

certificate under section 6325(b)(1) or

12. Give the name, address and telephone number

6325(b)(2)(B) of the Internal Revenue Code.

where you may be reached.

Payment is required for certificates issued under

section 6325(b)(2)(A). Do not send the payment

with your application. The Technical Services

13. Give the name, address and telephone number of

Group Manager will notify you after determining

your attorney or other representative, if any.

the amount due.

14. Write the following declaration over your

2. The Technical Services Group Manager will

signature and title: “Under penalties of perjury, I

have your application investigated to determine

declare that I have examined this application,

whether to issue the certificate and will let you

including any accompanying schedules, exhibits,

know the outcome.

affidavits, and statements and to the best of my

knowledge and belief it is true, correct, and

3. A certificate of discharge under section 6325(A)

complete.”

will be issued upon receipt of the amount deter-

mined to be the interest of the United States in

Additional Information

the subject property under the Federal tax lien.

Make payments in cash, or by certified, cashier’s,

Please follow the instructions in this publication when

or treasurer’s check. It must be drawn on any

applying for a Certificate of Discharge of Property from

bank or trust company incorporated under the

Federal Tax Lien.

laws of the United States, or of any state, or

possession of the United States. Payment can

The Technical Services Group Manager has the

also be made by United States postal, bank,

authority to issue a certificate of discharge of a lien that

express, or telegraph money order.

(If you pay

is filed on any part of a taxpayer’s property subject to

by personal check, issuance of the certificate of

the lien. The following sections and provisions of the

discharge will be delayed until the bank honors

Internal Revenue Code apply:

the check.)

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

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