Good afternoon, everyone. I'm Bob Jablonski, and my firm is Bob Jablonski and Associates. We are located in Richardson, Texas, right outside of Dallas, and we provide tax service help, including tax preparation and planning. We specialize in IRS representation, assisting taxpayers who have tax problems. Today, we are going to cover when you can get a loan on a property that is under an IRS lien subordinated by the IRS. To provide an overview, this is the fourth video in a series on tax liens. In this video, we will discuss real estate transactions and how to get a loan on a property once a federal tax lien is filed. A taxpayer tax lien is the federal government's legal claim to a taxpayer's property. Two things must have occurred for a tax lien to be filed: the tax must be assessed, and notice must be given to the taxpayer. There are a few ways to find out if an NFTL (Notice of Federal Tax Lien) has been filed. The taxpayer should have received Form 660, or you can call the IRS to confirm. Alternatively, if you have access to it, you can pull tax transcripts as well. Now, what is the subordination of an IRS lien? Once the IRS files a notice of federal tax lien against the taxpayer, they become the first in line for claims against the assets moving forward. However, this does not mean that the IRS bypasses all other liens. If the taxpayer has a mortgage loan, for example, the lender who already filed a lien is still in the first position. The IRS would then be in the third position. No one else can file a lien in front of the IRS at that point. When the IRS agrees to subordination, they voluntarily agree to be behind a...
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Irs subordination 14134 Form: What You Should Know
See Publication 1501 for more on this. Revenue Code Use Publication 1153. 1. Complete Form 14134. It is also required to send the application to IRS by mailing Form 2106 return to the address on page one of the Publication. Enforcing Subordination of a Tax Lien Taxpayers must keep a federal tax lien on property with a federal tax lien or the mortgage may be repossessed by a court or secured party. To enforce the subordination of this federal tax liens, Federal Tax Lien Subordination (CTS) is necessary. Subordination of Federal Tax Lien Subordination has two main goals: avoiding foreclosure and avoiding the bankruptcy of the secured party. The debtor is still liable for the mortgage. In addition, this Federal Tax Lien Subordination (CTS) allows federal tax liens on real estate to be discharged by bankruptcy. But first, federal tax liens must first be subordinated to a tax lien. Federal Tax Lien — Defined The term tax lien means any debt due to the United States, or any agency or instrumentality thereof, at any time as a result of the receipt of an amount that is specifically exempted, or which may be reasonably assumed to be exempt, from any tax. Such debt includes all forms of property tax (such as sales or use tax as well as property tax specifically applied to real property), personal property tax under the Internal Revenue Code and any debt for the collection of such tax imposed under any law administered by the Internal Revenue Service. It does not include the payments which are due to persons who receive income tax exemptions from the United States, or tax refunds. A lien does not include the interest chargeable on any debt secured by or including a mortgage on real property, the payment of which would constitute part of the rental value of such real property and is incidental to the lease or rental of such property. When a lien arises, the IRS issues a certificate of lien and sends the debtor a notice of lien. If no payment is received within 10 days of the date of the notice of lien, the lien is automatically converted to an administrative tax lien and the debt becomes a tax lien.
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