Received an IRS Notice? Start With These Three Questions

Receiving a letter from the IRS can be unsettling. The envelope may contain unfamiliar terminology, an amount the IRS says is due, or a deadline that appears to require immediate action.

But an IRS notice does not necessarily mean the IRS is correct, and it does not mean every notice should be handled in the same way.

Before paying the amount shown, calling the IRS, or sending a written response, it is important to understand exactly what the notice concerns. A useful starting point is to check three things: the tax period, the response date, and the issue the IRS has identified.

1. Confirm the Tax Period

Start with a basic question:

Which tax year or tax period is the IRS contacting you about?

IRS correspondence generally identifies the tax period involved. That information matters because taxpayers may have multiple returns, amended returns, payments, extensions, or prior communications with the IRS.

Before responding, compare the notice with your records for the identified period. Depending on the issue, useful documents may include:

The tax return that was filed
An amended return, if applicable
IRS account transcripts
W-2s, 1099s, K-1s, or other tax documents
Proof of estimated or other tax payments
Previous IRS correspondence
Documents supporting deductions, credits, or other reported items

Do not assume that a notice relates to your most recently filed return.

Why the Tax Period Matters

Suppose a taxpayer receives a notice in 2026. The notice may concern a 2024 return rather than the taxpayer’s 2025 return.

Responding based on records from the wrong year can create unnecessary confusion and may fail to address the issue the IRS is actually raising.

Identifying the correct tax period gives you a starting point for reconstructing what happened.

2. Identify the Response Date

Next, look carefully for any date by which the IRS says you should respond or take action.

Not every date appearing on an IRS notice has the same legal significance. Depending on the type of correspondence, a deadline may relate to providing information, disputing a proposed adjustment, requesting administrative review, responding to collection activity, or exercising other procedural rights.

Some tax deadlines can have significant consequences.

For example, certain IRS deficiency procedures can result in a Notice of Deficiency that gives the taxpayer a limited period to petition the United States Tax Court. Other collection notices may involve separate rights and deadlines.

The specific rules depend on the notice and circumstances.

Do Not Rely Only on the Date You Opened the Letter

A common mistake is calculating time based on when the taxpayer happened to read the notice.

Instead, review the notice itself. Look at:

The notice date
The response or payment date
Any separately stated appeal or petition deadline
Instructions explaining how and where to respond

If you are uncertain about the significance of a deadline, consider obtaining professional advice promptly rather than assuming additional time will be available.

3. Understand What the IRS Says Is Wrong

Once you know the tax period and relevant dates, determine why the IRS sent the notice.

Do not focus only on the balance printed at the top of the page.

Read the explanation.

The IRS may be contacting a taxpayer for many different reasons. For example, correspondence might concern reported income, a mathematical adjustment, missing information, a payment issue, penalties or interest, a proposed change following an examination, or collection of an existing liability.

The appropriate response depends heavily on the underlying issue.

Compare the IRS Position With Your Records

If the IRS says information reported by a third party does not match the tax return, determine what information is different.

If a payment appears to be missing, review records showing when and how the payment was made.

If the IRS changed a deduction or credit, determine what documentation supports the position taken on the return.

If the notice follows an examination, identify exactly which proposed adjustments remain disputed.

The goal at this stage is not necessarily to prepare an immediate response. It is to understand the difference between what was reported and what the IRS now says should have happened.

Should You Call the IRS Immediately?

Sometimes calling the IRS can help clarify an account issue. In other situations, particularly where the notice involves a substantive dispute or important procedural rights, it may be useful to understand the matter before making contact.

Before calling, have the notice and relevant records available.

If the issue is complex, involves a significant amount, follows an audit, concerns collection activity, or could affect appeal or Tax Court rights, consider whether professional guidance would be appropriate before responding.

Should You Pay the Amount on the Notice?

An IRS notice showing an amount due should be taken seriously, but receiving a notice does not by itself answer whether the amount is correct.

First determine:

What created the balance?

Does it match the return and payment history?

Is the IRS proposing a change or stating an assessed balance?

Are there rights or procedures for challenging the issue?

The answers depend on the type of notice and the taxpayer’s circumstances.

Keep the Entire Notice

Do not discard the envelope or pages that appear unimportant.

Keep a complete copy of the correspondence together with any response and supporting documents.

If you communicate with the IRS, maintaining a simple record can also be useful. Note the date, method of communication, what was submitted or discussed, and any follow-up that was requested.

Good records can become particularly important if the issue continues over multiple months or moves into another stage of the administrative process.

A Simple Framework

When an IRS notice arrives, start with three questions:

1. What tax period does this concern?
Make sure you are reviewing the correct return and records.

2. When do I need to act?
Identify every response or procedural deadline stated in the correspondence.

3. What exactly does the IRS say is wrong?
Understand the underlying issue before deciding how to respond.

Those three questions will not resolve every tax controversy, but they can help you understand what you are dealing with and what information may be needed next.

When an IRS Notice Becomes a Tax Controversy

Some IRS correspondence involves relatively straightforward account issues. Other notices can be the beginning—or continuation—of a more substantial federal tax dispute.

A matter may warrant closer attention when it involves an examination, significant proposed liability, penalties, collection activity, administrative appeal rights, or potential U.S. Tax Court proceedings.

The earlier the notice is understood, the easier it is to evaluate the available options before an important deadline passes.

Received an IRS Notice?

Basis Law assists individuals and businesses with federal tax controversy and IRS matters. Federal tax representation may be available to clients nationwide.

If you received IRS correspondence and are unsure what it means or how to respond, you can schedule a consultation to discuss the notice and the circumstances surrounding it.

This article is provided for general informational and educational purposes only and does not constitute legal advice. Reading this article, visiting this website, or contacting Basis Law does not create an attorney-client relationship. Tax matters are fact-specific, and applicable procedures and deadlines depend on the particular circumstances.

Why the Response Date on Tax Correspondence Deserves Attention

When a letter arrives from the IRS, it is natural to focus first on the amount the IRS says is due or the issue identified in the notice.

But another part of the correspondence deserves immediate attention:

When does the IRS say you need to respond?

The response date is not merely an administrative detail. Depending on the type of correspondence and where the matter stands, timing can affect a taxpayer’s ability to seek administrative review, challenge collection activity, petition the U.S. Tax Court, or otherwise preserve important procedural rights.

That does not mean every date printed on an IRS letter has the same legal significance. It means taxpayers should understand what the date relates to before deciding how to respond.

Not Every IRS Deadline Does the Same Thing

Tax correspondence can arise at very different stages of a matter.

A taxpayer might receive a request for information during an examination, a proposed adjustment, correspondence offering an opportunity to request administrative review, a collection notice, or a statutory notice associated with potential court rights.

Those documents do not all operate the same way.

A date associated with producing documents during an examination may have different consequences from a deadline for requesting administrative review. And both are different from a deadline associated with petitioning the U.S. Tax Court.

The important question is therefore not simply:

“What is the deadline?”

It is also:

“What right, procedure, or consequence is connected to this deadline?”

Some Correspondence Can Affect Tax Court Rights

Certain IRS correspondence can have particularly significant procedural consequences.

For example, a Notice of Deficiency generally provides a limited period during which a taxpayer may petition the U.S. Tax Court to challenge a proposed deficiency before paying the disputed amount.

That makes recognizing the document itself critical.

A taxpayer who focuses only on the amount shown on the notice may overlook that the correspondence also provides information about the taxpayer’s procedural rights and the time available to exercise them.

The response date is therefore not simply a suggestion to “get back to the IRS.” Depending on the correspondence, it may be connected to an important opportunity to challenge the IRS’s position.

Collection Notices Can Carry Their Own Deadlines

Timing is also important when a matter has entered the IRS collection system.

Certain collection notices can provide taxpayers with opportunities to seek administrative review of IRS collection activity. Depending on the particular notice and circumstances, failing to act within the applicable period may affect the procedures and rights available later.

This does not necessarily mean that every option disappears when a date passes.

It does mean that the options available before a deadline may not be identical to those available after it.

That distinction is one reason IRS collection correspondence should not be placed in a pile to address whenever there is more time.

The Date You Open the Envelope Is Not Necessarily the Date That Controls

Another mistake is assuming that the relevant period begins when the taxpayer actually reads the letter.

That is not a safe assumption.

Different tax procedures calculate time differently. Depending on the particular rule involved, the relevant date may relate to when correspondence was issued or mailed, a date stated in the notice, when something was received, or another event prescribed by applicable law or procedure.

The practical lesson is simple:

Do not calculate a tax deadline based solely on when you happened to open the mail.

Read the entire notice and identify the dates appearing in it.

If you are unsure what a particular date means, that is a question worth resolving promptly.

Look for More Than One Date

IRS correspondence may contain several dates, and those dates may serve different purposes.

When reviewing tax correspondence, look for:

The date of the notice or letter
The date by which the IRS requests a response
Any deadline associated with requesting administrative review
Any separately identified appeal or petition date
Any payment date stated in the correspondence

Then determine what each date actually means.

A date requesting documents during an examination is not necessarily equivalent to a deadline associated with Tax Court rights. Likewise, a payment date and a deadline for preserving an administrative remedy may not be the same thing.

Simply identifying a date is not enough. Its procedural significance matters.

Asking for More Time Is Not the Same as Having More Time for Everything

There may be circumstances in which the IRS allows additional time to respond to an administrative request.

But taxpayers should not assume that every deadline can be extended simply by calling the IRS, requesting additional time, or continuing to communicate with an IRS employee.

A conversation about one aspect of a matter does not necessarily alter a separate statutory or procedural deadline.

That distinction becomes particularly important when correspondence may affect administrative appeal rights, collection rights, or access to the U.S. Tax Court.

Before assuming that a deadline has changed, understand which deadline you are dealing with and whether it can actually be extended.

A Response Should Be Timely, But It Should Also Be Thoughtful

Paying attention to a response date does not mean sending something to the IRS simply to get a response out the door.

A useful response should address the issue the IRS is actually examining or disputing.

Before responding, consider:

What is the IRS asking for?

What issue is the IRS trying to resolve?

What do the documents I am considering providing actually establish?

Are there facts or records that affect my position?

What legal rules govern the issue?

Could this response affect a later examination, appeal, collection proceeding, or Tax Court case?

The goal should not simply be to send paperwork before a date passes. The goal is to understand the procedural posture, preserve important rights, and respond intentionally based on the facts and issues involved.

Keep the Entire Notice

When you receive tax correspondence, keep everything.

Do not save only the first page showing the balance or response date. Keep the complete notice, all attachments, response forms, and instructions together.

Keeping the envelope may also be useful.

If you respond, retain a complete copy of what you submitted and a record of when and how it was sent. If you communicate with the IRS by telephone, consider keeping a record of the date of the conversation, who you spoke with, what was discussed, and any requested follow-up.

Those records can become particularly important when a matter continues for months or moves into another stage of the administrative process.

What If the Response Date Has Already Passed?

Do not automatically assume the matter is hopeless.

But do not assume the missed date is harmless either.

What happens next depends on what document was issued, what date passed, where the matter stands procedurally, and what options remain available.

Missing a date associated with an examination request can have different consequences from missing a deadline connected to administrative review, collection procedures, or court rights.

That is why identifying the document and understanding its procedural significance should come before deciding what can still be done.

If you discover that a response date has already passed, addressing the correspondence promptly may be especially important.

The Practical Takeaway

When tax correspondence arrives, do not look only at how much the IRS says you owe.

Look at when the IRS says you need to act—and why.

The date may relate to a request for information, an opportunity for administrative review, proposed collection activity, potential litigation rights, or another stage of the federal tax process.

Understanding that distinction can be just as important as understanding the substantive tax issue itself.

Received Tax Correspondence With an Upcoming—or Missed—Response Date?

Basis Law PLLC represents individuals and businesses in federal tax controversy matters, including IRS examinations, administrative appeals, collection matters, federal tax liens and levies, and disputes before the U.S. Tax Court.

If you have received IRS correspondence and are unsure what a response date means, where your matter stands, or what options may be available, schedule a consultation with Basis Law PLLC to discuss the correspondence and your circumstances.

When scheduling your consultation, keep the entire notice or letter, including all pages and attachments, available for review.

This article is provided for general informational and educational purposes only and does not constitute legal or tax advice. Tax matters are fact-specific, and applicable procedures, rights, and deadlines depend on the particular correspondence and circumstances. Reading this article, visiting this website, contacting Basis Law PLLC, or scheduling a consultation does not create an attorney-client relationship. Do not rely on this article to determine or calculate a filing, appeal, response, payment, petition, or other tax deadline.

Contributing to ABA Tax Section Comments on the IRS Voluntary Disclosure Practice

I’m incredibly honored to have substantially contributed to the American Bar Association Section of Taxation’s comments on the proposed changes to the IRS Voluntary Disclosure Practice as a member of the Civil & Criminal Tax Penalties Committee.

This was my first time truly engaging in the government submissions process, and it gave me a front-row seat to how thoughtful, technical, and collaborative this work really is. The comments themselves tackle critical issues—from clarifying compliance requirements and improving the penalty framework to making the process more accessible and predictable for taxpayers.

We all know the Internal Revenue Code is a mountain of law, and the regulations that follow can be just as daunting. But when you bring together a group of individuals with deep knowledge across different areas, something powerful happens.

This experience showed me how much having a strong professional community enriches not only the work, but your understanding. It stretches your thinking, sharpens your analysis, and exposes you to perspectives you wouldn’t reach on your own.

I thought I was a bit of a tax nerd—but working alongside this group quickly humbled me in the best way. The level of experience, diligence, precision, and genuine commitment to getting it right was on another level.

A special thank you to Sara Neill , Parag Patel, and Ish Dalal, EA for your leadership, guidance, and willingness to pour into this process. Your example made a lasting impression.

No one person can do it alone. But when each of us contributes our part, we create something far more impactful—and we all benefit from the collective.

Grateful for the opportunity, and looking forward to continuing to grow in this space.

Your Home and a Federal Tax Lien: A Guide to Selling, Refinancing, and Resolving IRS Debt

Discovering a federal tax lien against your home can make an already difficult tax situation feel even more complicated—especially if you are planning to sell, refinance, or borrow against the property.

A federal tax lien, however, does not necessarily mean that a real estate transaction cannot move forward.

Depending on your circumstances, there may be IRS procedures that allow you to sell your home, obtain financing, address the public lien filing, or coordinate the transaction with a broader resolution of your tax debt.

Understanding which option applies—and addressing it early—can be important when a closing date, financing deadline, or IRS deadline is approaching.

What Is a Federal Tax Lien?

A federal tax lien is the government’s legal claim against your property for unpaid federal tax.

The Notice of Federal Tax Lien, commonly called an NFTL, is the public filing that alerts other creditors to the government’s claim. That filing may surface during title or lending reviews and can affect your ability to sell or borrow against your home.

A federal tax lien is also different from an IRS levy. A lien is a legal claim against property, while a levy is an action used to take property or money to collect a tax debt.

Understanding that distinction is an important first step when considering your options.

Can You Sell a Home With a Federal Tax Lien?

Potentially.

One option that may allow a transaction to proceed is a certificate of discharge.

A discharge removes the federal tax lien from the specific property described in the certificate. This may allow a buyer to receive the property free of that federal lien even though the homeowner continues to owe taxes.

Importantly, a discharge generally does not eliminate the underlying tax debt or remove the lien from other property.

The IRS evaluates its interest in the property after considering factors such as the property’s value, claims with higher priority, and acceptable sale expenses.

For example, a home could sell for $500,000 while a senior mortgage requires a $420,000 payoff and approved sale expenses total $30,000. In that simplified example, $50,000 may remain available for the IRS lien interest.

If the homeowner owes $120,000 and the IRS approves a $50,000 discharge payment, the sale may be able to proceed while approximately $70,000 of the tax debt remains unresolved, before additional interest, penalties, or adjustments.

A discharge may also be possible in some circumstances where there is no equity available for the IRS, but the IRS will require documentation supporting the property’s value and the claims with higher priority.

What If You Want to Keep the Home and Refinance?

Selling is not the only situation in which a federal tax lien can become an issue.

If you want to refinance your mortgage or obtain a second mortgage, subordination may be an option to evaluate.

Subordination does not remove the federal tax lien. Instead, it allows a specified lender to move ahead of the IRS in priority when the legal requirements are satisfied.

For example, new financing might provide funds that are paid to the IRS. In another situation, refinancing might reduce a homeowner’s monthly mortgage obligation and improve the amount the IRS can ultimately collect.

The IRS evaluates the particular transaction and supporting financial information.

Even when the IRS approves subordination, the lender must independently approve the loan. IRS approval also does not mean that taking on new debt is financially appropriate for the homeowner.

Release and Withdrawal Are Different

Two other terms homeowners may encounter are release and withdrawal.

A release extinguishes the federal lien covered by the certificate after the applicable legal requirements have been satisfied, such as payment in full or completion of the payment terms of an accepted offer in compromise.

Withdrawal addresses the public Notice of Federal Tax Lien in qualifying circumstances. Withdrawal of the NFTL does not itself forgive the underlying tax debt.

Because discharge, subordination, release, and withdrawal accomplish different things, the appropriate procedure depends on both the property transaction and the taxpayer’s broader situation.

Coordinating a Property Transaction With an Offer in Compromise

Some homeowners may also be considering an offer in compromise, which asks the IRS to settle specified tax liabilities for less than the full amount owed.

When a property sale or financing is also involved, timing can become particularly important.

Proceeds from an approved sale or financing may, in qualifying circumstances, count toward an accepted offer through coordinated IRS processing. However, approval of a discharge or subordination request does not mean the IRS has approved the offer in compromise.

If discharge or subordination proceeds are paid before the offer is submitted, those amounts generally cannot later be reused as an offer payment.

The IRS also considers more than the proceeds from the home. For a collectibility-based offer, the IRS evaluates assets, income, allowable expenses, and other relevant circumstances.

This is why the sequence of a property transaction and a tax-resolution strategy should be considered before funds are distributed.

What Happens If a Federal Tax Lien Is Left Unresolved?

Ignoring an NFTL can create complications later.

The filing may appear during a future title or lending review and could delay a sale, interfere with financing, or affect how proceeds must be distributed.

Interest and applicable penalties may also continue to increase the outstanding tax balance. Subject to applicable notice requirements and protections, the IRS may pursue additional collection activity.

Homeowners should also pay careful attention to deadlines. A pending discharge or subordination application does not automatically stop IRS collection activity or preserve an appeal deadline.

Likewise, the collection period should not be calculated simply from the date an NFTL was recorded. The applicable period generally runs from assessment, and certain events—including bankruptcy, offers in compromise, and some appeals—can affect the calculation.

Start Before the Closing Date

Waiting until the final days before closing can significantly complicate a transaction.

IRS Publications 783 and 784 call for submission at least 45 days before the transaction date when the applicable certificate is needed. Preparation should begin before that point, and approval or completion may take longer.

If you are considering a sale or refinance, useful documents may include:

The Notice of Federal Tax Lien and recent IRS correspondence
Existing payment or offer agreements
The property deed
Mortgage payoff information
Estimated property value
Proposed sale or loan terms
Preliminary closing information
Any collection, levy, foreclosure, or court notices

If there is already a closing date, foreclosure notice, levy notice, or IRS appeal deadline, identify that date immediately.

Evaluating the Property and Tax Debt Together

A federal tax lien does not automatically eliminate your ability to sell or finance your home.

The appropriate strategy may involve a discharge, subordination, release, withdrawal, payment arrangement, offer in compromise, or another tax-resolution option depending on the circumstances.

Basis Law represents taxpayers in federal tax controversy matters. We can review the IRS notices, proposed property transaction, and broader tax situation to evaluate which options may be appropriate and how the transaction should be coordinated with the remaining tax debt.

Need help evaluating a federal tax lien affecting your home? Contact Basis Law to request a federal tax lien consultation.

This article provides general educational information and does not constitute legal advice or create an attorney-client relationship. Results are not guaranteed, and representation requires a written engagement agreement.

Federal Tax Liens in Real Estate Transactions: A Guide for Realtors, Lenders, and Title Professionals

A federal tax lien discovered during a real estate transaction can create immediate questions for everyone involved.

Can the property still be sold? Can the lender obtain the priority it requires? What happens to the closing proceeds? Does the lien have to be paid in full before the transaction can move forward?

A federal tax lien can complicate a sale, refinance, or second mortgage—but it does not automatically end the transaction.

Depending on the circumstances, an IRS discharge, subordination, release, or other procedure may allow the transaction to proceed.

For realtors, lenders, title companies, and settlement agents, identifying the issue early can create valuable time to determine what the transaction requires.

Start by Identifying What IRS Approval Is Needed

Different IRS procedures accomplish different things.

Discharge

A discharge removes specified property from the federal tax lien, often to permit a sale.

The taxpayer’s remaining federal tax debt generally continues, as does the lien against other property.

Subordination

Subordination allows a specified lender or other creditor to move ahead of the IRS in priority.

The federal tax lien itself remains attached to the property.

Release

A release extinguishes the federal lien covered by the certificate when the applicable legal requirements have been satisfied.

Withdrawal

Withdrawal removes the public Notice of Federal Tax Lien under qualifying conditions.

It does not, by itself, cancel the underlying tax debt or statutory lien.

Understanding these distinctions can help the transaction team identify what actually needs to happen before closing.

A Federal Tax Lien Does Not Necessarily Prevent a Sale

A property discharge may allow a transaction to proceed without requiring the taxpayer to pay the entire IRS balance.

A common discharge analysis considers the value of the IRS’s interest after accounting for lien priority and allowable transaction expenses.

Consider a simplified example:

A property sells for $500,000. A senior mortgage requires a $420,000 payoff, and the IRS accepts $30,000 of sale expenses. That leaves $50,000 potentially available for the federal tax lien interest.

If the seller owes $120,000 and the IRS approves a discharge based on the $50,000 payment, the transaction may be able to close free of that federal lien while the seller continues to owe approximately $70,000, before additional accruals or adjustments.

Where higher-priority claims consume all of the value available to the IRS, a no-value discharge may also be possible, subject to IRS review and approval.

Subordination May Help With Financing

Federal tax liens can also create issues during a refinance or second-mortgage transaction.

In an appropriate case, the IRS may subordinate its interest and permit a lender to obtain the priority required for the new financing.

One scenario may involve financing that produces a payment to the IRS. Another may involve refinancing that improves the taxpayer’s cash flow and, in turn, increases the amount ultimately collectible by the government.

Subordination does not eliminate the borrower’s IRS debt, and the lender must still apply its own underwriting and title requirements.

The actual loan structure, use of proceeds, fees, priority, and financial effect should therefore be reviewed as part of the application.

Offers in Compromise Can Make Timing More Important

A transaction becomes more complex when the property owner is also pursuing an offer in compromise.

For a qualifying taxpayer, transaction proceeds may potentially count toward an accepted offer when a discharge or subordination is properly coordinated with the offer process.

But the timing of payments matters.

If discharge or subordination proceeds reach the IRS before the offer is submitted, those funds generally cannot later be reused as an offer payment.

When the requests are appropriately coordinated, proceeds may potentially count toward an accepted offer. The lien-certificate application and offer in compromise nevertheless require separate IRS determinations, and submitting both does not guarantee approval of either.

The IRS also evaluates the taxpayer’s broader financial situation when considering a collectibility offer, including assets, income, allowable expenses, required tax filings, and current tax payments.

For transaction professionals, the important point is simple: do not assume that closing proceeds can be distributed in a particular way merely because an offer in compromise is pending or has been accepted.

Early Referral Can Help Protect the Transaction Timeline

Timing is particularly important when an IRS lien certificate is required.

IRS Publications 783 and 784 call for submission at least 45 days before the certificate is needed. That timeframe is not a guaranteed turnaround, and preparation should begin earlier.

A referral may be appropriate as soon as:

A title search reveals a Notice of Federal Tax Lien
A seller owes more than the equity available from the transaction
A lender requires priority over an existing federal tax lien
A closing date is approaching
The owner is simultaneously pursuing an IRS tax-resolution option

Waiting for the final closing statement before addressing the federal lien can unnecessarily compress the timeline.

What Should the Transaction Team Provide?

Efficient coordination depends on obtaining the right information early.

Realtors can provide, with the owner’s permission, the signed contract and amendments, property address, proposed closing date, known deadlines, and available valuation information.

Title and settlement professionals can provide the preliminary settlement statement, title report, deed or legal description, Notices of Federal Tax Lien, current payoff information, and an itemized breakdown of proposed payments and transaction costs.

Lenders can provide the proposed loan terms, amount, fees, use of proceeds, and required priority. For a refinance, information about the current and proposed monthly payments may also be relevant.

The property owner will generally need to provide IRS correspondence, existing tax agreements, financial information, and required signatures.

The transaction figures should also be updated promptly when the purchase price, costs, credits, payoffs, financing, ownership, or closing date changes.

A Pending Application Is Not Clearance to Close

Submitting an IRS application does not itself mean the transaction has been approved.

Before closing or distributing funds, the parties should confirm the applicable IRS commitment conditions and required payments.

After closing, the final settlement statement, evidence of the required IRS payment, and recorded deed or mortgage may also need to be provided, depending on the relief granted.

The exact procedure depends on the transaction and the IRS certificate involved.

Coordinate Federal Tax Lien Issues Before They Become Closing Emergencies

Federal tax liens require coordination between the taxpayer’s federal tax issue and the underlying real estate transaction.

Early identification can provide more time to analyze lien priority, available proceeds, financing terms, IRS requirements, and the appropriate certificate request.

Basis Law assists property owners with federal tax controversy matters involving federal tax liens and can coordinate the IRS side of a proposed transaction with authorized realtors, lenders, title companies, and settlement professionals.

If a federal tax lien has appeared in a pending transaction, contact Basis Law with the property state, transaction type, and relevant deadline so the appropriate next steps can be evaluated.

This article provides general educational information and does not constitute legal advice or create an attorney-client relationship. IRS approval, financing, tax savings, and closing dates are not guaranteed. State-law title and property issues may require counsel licensed in the jurisdiction where the property is located.