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

Instructions On How To Apply For A Certificate Of Discharge Of Property From Federal Tax Lien Page 4

If application is made under sections

Provide the name, address and telephone

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

number of your attorney or representative as

sale of a principal residence, the taxpayer may

well as the closing attorney or Settlement

be eligible for a relocation expense allowance

Company.

based on an inability to pay, and subject to

limitations. This allowance will be taken from

If your application is denied, you have appeal

sale proceeds and will not reduce the tax

rights, Form 9423, Collection Appeal Request

liability. To apply for the allowance, complete

and Publication 1660, Collection Appeal

and submit Form 12451, Request for Reloca-

Rights, will be issued, along with an explana-

tion Expense Allowance, with the application for

tion of why your application was denied.

discharge.

If application is made under provisions of

section 6325(b)(2)(A), or 6325(b)(2)(B) be-

cause a mortgage foreclosure is contemplated,

there will be a determination of the amount re-

quired for discharge or a determination that the

Federal tax lien interest in the property is

valueless.

Within 30 days from the date of the application, the

applicant will receive a written conditional commit-

ment for a certificate of discharge. When the

foreclosure proceeding has been concluded, a

certificate of discharge will be issued in accordance

with the terms of the commitment letter. Also, see

Publication 487, How to Prepare Application

Requesting the United States to Release Its Right to

Redeem Property Secured by a Federal Tax Lien.

If application is made under the provisions of

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

Group Manager has the authority to approve an

escrow agent selected by the applicant. Any

reasonable expenses incurred in connection

with sale of the property, the holding of the

fund, or the distribution of the fund shall be

paid by the applicant or from the proceeds of

the sale before satisfaction of any claims or

liens. Submit a copy of the proposed escrow

agreement as part of the application.

A certificate of discharge under section

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

equal to the United States interest in the

property is received. In the case of former

entireties property, the Service’s interest will be

one-half the value of the property. Payment of

the interest of the United States in the property

may be made in the form of cash, other certi-

fied funds, or the posting of a bond acceptable

to the Secretary.

Instructions On How To Apply For A Certificate Of Discharge Of Property From Federal Tax Lien Page 4

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