How a Homeowner Released a Federal Tax Lien to Sell Their House

A retiree found a buyer for her home, then discovered a federal tax lien standing in the way. Here is how the sale still closed.

Client

Retiree, Florida

Owed → Outcome

$47,000Sale closed on time

Resolution

Lien discharge

Illustrative client scenarios based on common case types. Individual results vary.

The situation

Carol, a retiree in Florida, accepted an offer on her home only for the title company to discover a Notice of Federal Tax Lien for about $47,000. The lien attached to the property and the closing could not proceed until it was addressed. She had only weeks before the buyer could walk.

What we did

  1. We reviewed her transcripts and the recorded lien to confirm the exact balance and the IRS office handling it.
  2. Because she was selling the property, we pursued a lien discharge — removing the tax lien from that specific property so the sale could close.
  3. We prepared the discharge application showing the IRS would receive its share of the proceeds at closing.
  4. We coordinated directly with the title company and escrow so the IRS payoff and discharge lined up with the closing date.

The outcome

The IRS granted the discharge, the lien was cleared from the property, and the sale closed on schedule. The IRS was paid from the proceeds at closing, and Carol walked away with her remaining equity and no lingering federal tax debt.

Liens are not always a dead end

A federal tax lien does not necessarily stop a sale or refinance. Depending on your goal, a discharge or subordination can keep the transaction alive.

A tax lien in your way? We can help clear it.

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Frequently Asked Questions

Often yes — through a lien discharge or by paying the IRS its share from the sale proceeds at closing. We coordinate with your title company to make the sale possible.
No. A discharge removes the lien from one specific property. The lien may still apply to other assets until the debt is fully resolved or released.

About these stories

Illustrative client scenarios based on common case types. Individual results vary. These scenarios are composites drawn from common case types we handle at US Certified Tax Services; they are not specific named clients and are provided for illustration only. Outcomes depend on your individual facts and IRS determinations. For a review of your situation, request a free consultation.

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