I am a former IRS Agent and Former IRS Instructor.

We have discharged thousands of federal tax liens over my 28 years of practicing tax law. Most taxpayers are unaware of a procedure called the Application of Discharge of the Federal Tax Lien.

Do you have Federal Tax Lien on your home?    You can still sell your home.!!!

Most people feel that since they have a federal tax lien on their home they cannot sell their home. The good news, you can sell your home and IRS will work with you to help the sale go through.

Keep in mind, if you have an equity in the property, that equity goes to IRS at closing. If you have no equity, IRS will still accept and approve the discharge with proper documentation.

The process works like this:

1. Pull up IRS pub 783, application of discharge of the federal tax lien.

2. Read the instructions and start gathering the information the form/ pub requests of you.

3. You will need things like the sales contract, the closing statement, the appraisal ( find the rest on the pub )

4. Fill out IRS form 14135, Application of Discharge of the Federal Tax Lien

5. You should submit the application of discharge  at least 45 days prior to the time of closing.

6. Follow up on the submission of the packaging to find out who is working the case at IRS to make sure the agent is on top of the situation.

7. IRS will contact you after the package is processed.

8. You truly should hire a Professional Tax firm who knows there way and the right numbers to call.

What happens after the sale goes through.

The property is sold free and clear of the federal tax lien. IRS will release the federal tax lien on that piece of property only. They will issue a release of the federal tax lien on that piece of property only. The original federal tax lien stays in place .

You still owe IRS the balance and they will still try to collect through other sources.