Question
Does a Federal Tax Lien on the house affect both owners?
A friend has a house he purchased with his now ex-wife. He failed to pay his income taxes after the divorce and now has a Federal Tax lien on the house. He wants to sell his house but the house is worth less than the lien. We found a form to fill out to get the lien released with the ability to sell the house for less with 2 independent appraisals. My question is his ex-wife is still on the deed of the house. Will she get half the profit from the house prior to the IRS getting the remainder or does she loose any right to any of the money because of soley his problems? Does the IRS recognize dual ownership where only one person is in Tax default or are both people screwed? I found the answer. It is mentioned in the second half of section 6325(b)(2)(A)
5 months ago - 4 answers
Best Answer
Chosen by Asker
This happened several years ago, the IRS is very slow on collecting. If they were married any of the years the IRS is claiming there is no way for her to get off scott free. I doubt the lien will be released without full payment anyway, the reason for the lien is to force payment.
by Landlord
5 months ago
Asker's Rating: 
Other Answers
she can file innocent spouse paper with the IRS .
by brenda- 5 months ago
Your friend has let his tax problem go on for some time. He will not get the home out of lien unless he pays the back taxes off. Also his wife could be effected as well. I would consult a tax attorney if i was your friend.
by Big Deal Maker- 5 months ago
I love how people bury their heads in the sand, hoping that ... little things ... like FEDERAL TAX LIENS will somehow miraculously disappear.
by zeuz- 5 months ago