AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 6/26/2008 Subject: IRS Lien on Property
Question The title search on the property my husband and I are in the process of purchasing (a short sale) revealed a $30,000 IRS lien so our closing has been delayed. What usually happens in this scenario? Will the IRS release the lien against the property to allow it to be sold? How long does this process usually take? We were told that the seller's title company is "working on it" but we've been given no further information and are wondering if there is anything we can do to speed up the process.
Answer The lien will only be released if the tax is paid or the IRS subrogates the lien. If there is enough equity to pay off the IRS then they should be given a check at closing and the IRS will release the lien. If it will not full pay, they will have to subrogate. There is a lot of paperwork the seller has to do for this and it can take 6 to 10 weeks to do it. The only way to speed it up is for the seller to pay off the tax and go to the local IRS office and get a release of lien in hand. I have done more of these subrogations than most.
