Posted by Irwin on April 07, 1999 at 09:28:38:
He can certainly quitclaim his interest, but the grantee takes title subject to the tax lien, which means that the lien can still be enforced by levying against the property.
Tax Lein Experts!!! - Posted by BRnBA
Posted by BRnBA on April 06, 1999 at 23:49:27:
There is this vacant lot with highway frontage and all utilities that would be worth maybe 60-80K with a clear title but there is an IRS tax lein on it for appx. 100K. The owner knows he will not see a penny if it were sold. The lein is probably 15 yrs. old and the IRS keeps refiling. I own the lot next to it so I’m thinking, "if I can get a quit claim for pennies, I can use it for “parking” to supplement my lot. Better yet, or maybe not, what is the best approach to convince the IRS to settle at a discount?
Re: Tax Lein Experts!!! - Posted by Irwin
Posted by Irwin on April 07, 1999 at 08:27:34:
This is an interesting question. I doubt that the IRS will negotiate with you, rather than the taxpayer. I think he has to be involved. The IRS will probably want an appraisal and they would release their lien against the property for a percent (maybe 100, but you can try to discount it) of appraised value. The owner’s motivation would be to get as much of his IRS debt satisfied as possible. So he probably doesn’t want to give it away for pennies, and even if he did, IRS won’t let him. But, from time to time IRS goes to sleep at the switch, so you never know until you try something. Also, if the owner doesn’t have any other assets to satisfy IRS with, he might consider making an offer in compromise, using the sale of the property to you as the source of the funds for his offer. He’ll need a CPA to advise him on that.
If you just want to use it for surface parking, why not offer a lease with low rent, plus and option to buy, at some low dollar figure. As long as the IRS doesn’t levy on it’s lien, the owner gets income and you get the use of it. But don’t make any improvements, like paving it, or you’ll be making a nice gift to Uncle Sam. As I said, an interesting question.
Re: Tax Lein Experts!!! - Posted by BRnBA
Posted by BRnBA on April 07, 1999 at 09:20:25:
Irwin, are you saying the owner can’t quit claim his interest in the property?