Approaching The IRS...Should You Or Shouldn't You?

Many people think that approaching the IRS to ask for a release of Lien is a negative or scary experience. Let’s really think about what we’re doing here. If you have obtained a property with a hefty tax lien, do you think you should really approach the IRS directly? Let’s take a step back for moment. If you have not even gotten the deed, then you shouldn’t even think about this situation. I’ve always said not to worry yourself until it is necessary. Now, once you get the deed, let’s think about what you should do.

So you have gotten the deed. You now approach the IRS and ask for the Release of Lien. For a residential property, there is no reason for them not to release it to you. Commercial might be different, but as far as residential-stay confident!

It’s really your show. It’s truly up to you to show them the tax-assessed value, which should be lower than the lien. Why do you want to do this?

The goal here really is to show them there isn’t a whole lot of equity in it. And let’s face it-not much equity does not mean the same to the IRS as it does to you, right?

Don’t be worried. What’s the worst that can happen? Think about it. The worst that can happen is that they say no. And you are little wiser with some experience handling the IRS under your belt. And you can’t pay for that. That experience is priceless and will take you far with these kinds of endeavors.

Now the best? The best that can happen is you get the lien released and keep some residual income after making your improvements and leasing it out. It’s a win-win.

Keep in mind they will want a copy showing there is not a lien on the house any longer. In fact, it would be in your best interest to record it and get a copy before even talking to them. And worst-case scenario-if it doesn’t work, call the owner and let him or her know the IRS will not release the lien. Ask them if they want to let the house go into foreclosure or if they want it deeded back to you. The cost (either way) is yours. How you choose to handle the situation (and spend your money) is up to you!