Q) I’m selling a property that has an IRS lien. The property is being sold as a “short sale”, the sellers are not making any profit. What documentation is needed? Please advise.
A) For a property with an IRS lien, the documentation required may include the following:
- Proof of the outstanding IRS lien, such as a notice of federal tax lien or a transcript of the taxpayer’s account
- Details of the short sale agreement between the seller and the buyer, including the purchase price and terms of the sale
- A detailed financial statement of the seller, showing their income and expenses, as well as any assets and liabilities
- Evidence of the seller’s ability to repay the IRS debt, such as current pay stubs and bank statements
- Proof of the seller’s hardship, such as a medical condition or job loss, if applicable
It is important to note that the IRS may require additional documentation or information, and the specific requirements may vary based on the individual circumstances of the case. If you are unsure about the documentation required, it is recommended to seek the assistance of a tax professional or an attorney who specializes in IRS liens.