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

Instructions On How To Apply For A Certificate Of Discharge Of Property From Federal Tax Lien Page 3

4. If application is made under sections

6. If application is made under the provisions of

6325(b)(2)(A) or 6325(b)(2)(B) and is for the sale

section 6325(b)(3), the Technical Services Group

of a principal residence, the taxpayer may be

Manager has the authority to approve an escrow

eligible for a relocation expense allowance based

agent selected by the applicant. Any reasonable

on an inability to pay, and subject to limitations.

expenses incurred in connection with sale of the

This allowance will be taken from sale proceeds

property, the holding of the fund, or the distribu-

and will not reduce the tax liability. To apply for the

tion of the fund shall be paid by the applicant or

allowance, complete and submit Form 12451,

from the proceeds of the sale before satisfaction

, with the

of any claims or liens. Submit a copy of the

Request for Relocation Expense Allowance

application for discharge.

proposed escrow agreement as part of the

application.

5. If application is made under provisions of section

6325(b)(2)(A), or 6325(b)(2)(B) because a mort-

7. A certificate of discharge under section

gage foreclosure is contemplated, there will be a

6325(b)(4) will be issued when an amount

determination of the amount required for discharge

equal to the United States interest in the property

or a determination that the Federal tax lien interest

is received. The United States interest in the

in the property is valueless.

property may be made in the form of cash, other

certified funds, or the posting of a bond accept-

able to the Secretary.

Within 30 days from the date of the application, the

applicant will receive a written conditional commitment

for a certificate of discharge. When the foreclosure

8. Submit Form 12180,

Third Party Contact Form

proceeding has been concluded, a certificate of

Completing this document gives the Internal

discharge will be issued in accordance with the terms

Revenue Service the authority to contact

of the commitment letter. Also, see Publication 487,

individuals or companies, if necessary, when

How to Prepare an Application Requesting the United States

determining if the discharge is appropriate.

to Release its Right to Redeem Property by a Federal Tax

Lien.

9. Provide the name, address and telephone

number of your attorney or representative as

well as the closing attorney or Settlement

Company.

Publication 783 (Rev. 1-2004)

Department of Treasury

Internal Revenue Service

Catalog Number 46755I

Instructions On How To Apply For A Certificate Of Discharge Of Property From Federal Tax Lien Page 3

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