Contact UsHas anyone had success getting an IRS lien released against a deceased taxpayer? If so what is the secret?
Taxpayer dies leaving widow with an IRS lien for personally assessed TFRP from tax year 2005. Taxpayer's estate avoided probate as there were no assets of value other than the primary residence which was titled in joint name with widow JTWROS. Widow subsequently transferred title of the primary residence to her name solely without incident even though there is an IRS lien against deceased spouse that according to the IRS Centralized Lien Insolvency Center includes the primary residence now titled in solely the widow's name. Widow wants to now sell primary residence to downsize but the IRS will not release the lien even though the taxpayer is deceased and the property is not titled in taxpayer's name.
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Tax Professional Answers
Kathryn Morgan
If you have not already formally appealed the decision to not release the lien, do so. If nothing else file a release under equitable treatment or ability to pay. Make sure you have good documentation of what the value of the house was in the date of death and how much equity there was. You may be able to get the lien released if you cut a deal with the IRS to pay half of the equity in the home in the date of death upon sale. They are really really sticky about TRFP assessments, especially if it was not in a C Corp and it passed through to a joint return.
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561 weeks ago