Is It Possible to Sell Land with an IRS Tax Lien?
Many landowners facing financial difficulties may wonder if they can sell their land even when an IRS tax lien has been placed on it. The short answer is yes, but the process comes with certain legal and financial restrictions. The IRS places a tax lien on a property when a taxpayer owes unpaid taxes, which means that the government has a legal claim on the property. Before a sale can be finalized, the lien must be addressed in some way.
Challenges of Selling Land with an IRS Tax Lien
Selling a property with a tax lien presents several challenges, including:
- Title Restrictions – A tax lien appears on the property’s title, preventing a clear transfer to a new buyer until the debt is resolved.
- Buyer Hesitation – Many buyers are reluctant to purchase a property with unresolved tax issues due to the complexity of the transaction.
- IRS Payoff Requirement – The IRS will require the tax debt to be paid from the sale proceeds before releasing the lien.
- Possible Legal Delays – Without proper guidance, the process of negotiating with the IRS can cause significant delays in closing the sale.
How to Sell Land with an IRS Tax Lien
Despite the challenges, there are ways to successfully sell land with an IRS tax lien:
1. Pay Off the Lien Before Selling
If financially possible, paying off the tax debt before listing the property can remove the lien and allow for a smooth transaction. This can be done through personal funds, a loan, or financial assistance from a buyer.
2. Use Sale Proceeds to Satisfy the Lien
The IRS often allows property owners to sell their land and use the proceeds to pay off the tax debt. This requires working with the IRS to determine the payoff amount and ensuring that the lien is released upon closing.
3. Apply for a Discharge of the Lien
In some cases, the IRS may grant a Certificate of Discharge, which removes the lien from the property but not from the owner’s financial obligations. This allows the land to be sold while the tax debt remains attached to other assets.
4. Negotiate a Settlement with the IRS
Through an Offer in Compromise or lien subordination, the IRS may accept a reduced payment or allow other creditors to be paid first, making it easier to complete the sale.
Why Selling to Liberty Land Traders Is the Best Solution
For landowners looking for a quick and hassle-free way to sell land with an IRS tax lien, Liberty Land Traders provides a straightforward solution. We specialize in purchasing land directly, working with sellers to resolve tax liens efficiently, and ensuring a smooth sale process.
How Liberty Land Traders Can Help:
✔ Fast, Cash Offers – We provide immediate cash offers, allowing you to settle your tax debt quickly.
✔ Expert Assistance with IRS Liens – Our team understands the complexities of tax liens and can help navigate the process.
✔ No Hidden Fees or Commissions – Unlike traditional sales, we handle all closing costs, ensuring you get the most out of your sale.
✔ Quick Closings – We expedite the sale process to prevent further penalties and financial strain.
Take Action Today
If you need to sell land with an IRS tax lien, don’t wait until penalties increase or the IRS takes further action. Liberty Land Traders can help you navigate the process, provide a fair cash offer, and handle the necessary steps to clear your tax debt. Contact us today for a free, no-obligation consultation!