IRS liens - Posted by Walt_FL

Posted by Steve Heller, CFP, EA on May 05, 1999 at 19:27:01:


I would wait the IRS out. They probably won’t do anything but if they did you calling them would alert them to the situation. Since you don’t have much into it, I would just sit tight until the 120 days expires.

Steve Heller

IRS liens - Posted by Walt_FL

Posted by Walt_FL on May 05, 1999 at 08:56:06:


I bought a lot at a Tax Deed sale and it had IRS liens against it. I know the IRS has 120 days to Cash me out if they want the property, but my question is whether I should contact them right away or just wait? I will also have to Quiet Title so I would like to get started with that but want to make sure I do it right (Also The taxes for last year are due, should I wait for the IRS before I expend any more monies?)

The liens were about $120K, The Lot is worth $5K-$12K but not the most desirable neighborhood. I Paid about $850 for it (63x105 w/water sewer available). Anyone have any experience with Lots and the IRS or IRS lien experiences in general?

My hunch is that they don’t want a Lot???



Re: IRS liens - Posted by Irwin

Posted by Irwin on May 06, 1999 at 07:41:09:

I have never actually researched the question, but experienced tax sale buyers tell me that IRS liens are NEVER cut off by a (state real estate) tax sale, as opposed to a foreclosure sale which DOES cut them off after a 120 day redemption period. They tell me that a tax sale simply gives you title subject to the IRS lien, so quiet title doesn’t help. You have to negotiate a settlement for a release. This is something you should get checked out before spending any more money on tax payments etc…

Re: IRS liens - Posted by Rob FL

Posted by Rob FL on May 05, 1999 at 22:16:56:

Speaking from a title insurance background, I can assure you that it will do you no good to wait it out the 120 days. The reason being is that in Florida, no title insurer will give you clear title to the property based on a tax deed that is less than 4 years old.

When you quiet title the property, you will need to sue the IRS as a junior lienholder in order to clear the title. Then after the quiet title judgment is recorded you will need to wait another 120 days. I know how this works, I have seen this exact scenario at least a dozen times.

The company I work for has a website that contains their “title notes” which are the standard for the industry in Florida. The website is:
if you are interested in looking up the info for yourself.