Lucho Posted July 16, 2011 Report Share Posted July 16, 2011 IRS put a lien on my client’s commercial truck and 3 others small passenger cars for back taxes owed. A person wants to buy my client’s truck and my client would give all the proceed from sale to the IRS (if sold) What would be the effective way to request the removal of the lien for everything and not just the truck? I have the form 14135 and Pub. 783 but I guess I need to do more than just filling the form; I understand that an appraisal is also needed. Any help will be appreciated. Thank you in advance. Lucho Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted July 17, 2011 Report Share Posted July 17, 2011 Pay the taxes due?? Just a thought.... Quote Link to comment Share on other sites More sharing options...
Lucho Posted July 17, 2011 Author Report Share Posted July 17, 2011 Pay the taxes due?? Just a thought.... He does not have the money to pay the full amount. Businesses where he used to work went bankruptcy, however, he has being paying (and he still is)$500 a month for the last 2 years. Lucho Quote Link to comment Share on other sites More sharing options...
mlinder42 Posted July 17, 2011 Report Share Posted July 17, 2011 Are you sure that they went to Motor Vehicle and put a lien on each vehicle.I have had clients with liens filed but the lien was never put on the auto titles so there was no problem selling or trading the vehicle.You can also call IRS and try to release that vehicle from lien if they went that far. Quote Link to comment Share on other sites More sharing options...
Lucho Posted July 17, 2011 Author Report Share Posted July 17, 2011 Are you sure that they went to Motor Vehicle and put a lien on each vehicle.I have had clients with liens filed but the lien was never put on the auto titles so there was no problem selling or trading the vehicle.You can also call IRS and try to release that vehicle from lien if they went that far. Thank you Mlinder. We'll find out before calling IRS Lucho Quote Link to comment Share on other sites More sharing options...
jainen Posted July 17, 2011 Report Share Posted July 17, 2011 >>he has being paying (and he still is)$500 a month for the last 2 years.<< Just call the IRS tomorrow and tell them what he wants to do. With such a good payment record, they will easily agree. Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted July 17, 2011 Report Share Posted July 17, 2011 Pay the taxes due?? Just a thought.... That's not always so easy. I KNOW what it is like to owe the IRS and everyone else and everyone hollowing for their money. Sometimes we get into those situations through our own fault and sometimes due to no fault of our own. Fortunately, that part of my life is past. When someone tells me they don't have the money to pay what they owe, I BELIEVE THEM. I realize some people cry broke when they aren't but I'm not going to be their judge. Quote Link to comment Share on other sites More sharing options...
jainen Posted July 17, 2011 Report Share Posted July 17, 2011 >>That's not always so easy<< True--but in Lucho's case it IS easy. The client has been paying $500 per month for two years. That's all the credibility he needs. When he tells the IRS he has a buyer and they get all the money, they will agree. Unless he's trying to trick them by selling it to his brother or something, but they'll spot that scam right away. No appraisal needed either; the IRS has an entirely different way of deciding if it's a good deal. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted July 19, 2011 Report Share Posted July 19, 2011 I know that it is not always that easy. I had a client who paid $500 per month faithfully for ten years. He actually paid $60,000 on the original $20,000 debt and still owed $17,000. At that point, the IRS forgave the debt because of his payment record. HOWEVER, it took us a couple of years to get them to release the lien from his Credit Report. We made several trips to the County Court House and wrote letters and made calls. All he wanted to do was get some credit so he could buy a couple of newer trailers and a tractor for his trucking business. It was an extremely difficult situation. I don't remember how we finally got it accomplished. He got the two trailers and the newer tractor; then died shortly thereafter of an an aneurism at age 57. He was one of the hardest working and most honest men I ever knew who got in trouble before he became my client; pretty much through no direct fault of his own. There are times when the IRS just doesn't care. Until you find that one needle in the haystack who has compassion and the power to help, good luck. Quote Link to comment Share on other sites More sharing options...
Lucho Posted July 19, 2011 Author Report Share Posted July 19, 2011 I know that it is not always that easy. I had a client who paid $500 per month faithfully for ten years. He actually paid $60,000 on the original $20,000 debt and still owed $17,000. At that point, the IRS forgave the debt because of his payment record. HOWEVER, it took us a couple of years to get them to release the lien from his Credit Report. We made several trips to the County Court House and wrote letters and made calls. All he wanted to do was get some credit so he could buy a couple of newer trailers and a tractor for his trucking business. It was an extremely difficult situation. I don't remember how we finally got it accomplished. He got the two trailers and the newer tractor; then died shortly thereafter of an an aneurism at age 57. He was one of the hardest working and most honest men I ever knew who got in trouble before he became my client; pretty much through no direct fault of his own. There are times when the IRS just doesn't care. Until you find that one needle in the haystack who has compassion and the power to help, good luck. Thank you for your post mcb39. After 2 years paying a monthly $500, my client still owes close to $8,000. If he sells the truck, that money will go straight to The IRS. Lucho Quote Link to comment Share on other sites More sharing options...
jainen Posted July 19, 2011 Report Share Posted July 19, 2011 >>$500 per month... for ten years... on the original $20,000... still owed $17,000<< Pardon my skepticism... my interest rate calculator can't even guess with those figures. Anyway, it is not the same situation at all. A tax lien normally does survive most actions to cancel debt, even bankruptcy. Your client was trying to incur new debt after welching on his prior debt. Lucho's client is trying to liquidate assets for the sole purpose of paying down his tax bill. The IRS prefers that arrangement. Quote Link to comment Share on other sites More sharing options...
Jerry W Posted July 20, 2011 Report Share Posted July 20, 2011 The Federal Tax Lien attaches to ALL property and rights to property. Your may apply for a Certificate of Discharge of the lien. The process does take some time. On the other hand, if the PURCHASER has no knowledge of the lien and has not been provided actual notice of the lien, the purchaser can receive the vehicle free of the lien. Your client can then pay the proceeds of the sale to IRS. Absent the knowledge and notice of the lien by the purchaser, this would be a better and more efficient way to handle the matter IMHO. Jerry W Quote Link to comment Share on other sites More sharing options...
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