Tax lien payoffs?

[Margaret CPA in OH]

A new client is coming later trying to get an exact amount to pay off a tax lien.  His father and partner are both in homes with dementia and he (with POA) and partner's sister (with POA) are trying to sell the house they lived in.  Partner has $25,000+ IRS liens on the property from 2009, 2010, and 2011, apparently from SE tax.  I am planning to get signed 2848s from each (though I think I really just need that of partner's sister) to fax to IRS and hopefully contact a live agent to expedite process.  Any other suggestions?  The buyer is eager to close by end of the month but title folks (?) need the payoff amount first. 

[DANRVAN]

7 hours ago, Margaret CPA in OH said:

hopefully contact a live agent to

Practitioner Priority Service Hotline?

 

[Margaret CPA in OH]

Thanks, did that with very short wait time.  But now I have to call the Central Lien Processing unit, fax the POA again and get the real details.  Of course that office was closed by the time I finished with PP line.  So tomorrow.  At least I think this will work and quickly, I hope.  It was actually a nice diversion from typical stuff.

[Max W]

It might be easier to reach the PPS line.  They inform you of wait times, so you can call back later and try again.  They can give you the exact amount of the liens and you can order transcripts that can be faxed to you, which usually happens within minutes.

Once you have the 2848, call the PPS and tell them you have to fax it to them.  They will give you the number.  Always ask them to forward the 2848 to the CAF unit. Then after a week it will be on file.

If the liens can't be paid off, they will have to be subordinated to the mortgage by obtaining a Certificate of Subordination by filing form 14134 which is included in Pub 784. (see link).

The broker should be able to assist you with this.

https://www.irs.gov/pub/irs-pdf/p784.pdf

 

 

 

[Margaret CPA in OH]

Thanks Max.  I did all that as in my previous answer.  PPS agent looked at the POA's and told me to call the Central Lien Processing unit which I did this morning and refaxed the POA's there.  As I know it takes time to be on the CAF record, I was prepared to fax again.  That agent gave me lots of info and pubs to reference.  She was going to try to get to it this afternoon and fax a payoff letter but couldn't promise.  The seller will have plenty of money to pay off the liens at closing but we may have to get a Certificate of Discharge and I have info about that.  As the closing isn't until March 31, she said it was likely this would be a mailed issue.  I will try again in the morning.  There is no mortgage outstanding, only closing costs, I think.

An interesting little diversion from the usual tax prep stuff!  And they will pay so all good