The IRS Is Trying To Help

December 18th, 2008 categories: Rants & Riffs

Hopefully, you are completely current with the IRS and any taxes you may owe them. With a slowing economy, we may be seeing more tax liens placed against homes. These liens have to be paid before one can sell or refinance. The Wall Street Journal is reporting that the IRS has set up a system that will help homeowners get pay offs more quickly.

“The Internal Revenue Service has developed an “expedited process” to make it easier for homeowners to refinance their mortgages or sell their homes without having a federal tax lien delay or even block the process, officials said Tuesday.

IRS Commissioner Doug Shulman said he isn’t in a position to predict how many families will benefit. He did say there are more than one million federal tax liens outstanding tied to real estate and personal property. The IRS issues more than 600,000 federal tax lien notices a year.

When the IRS files a lien on someone’s property, it’s in effect making a formal claim to that property as security or payment for a tax debt. The lien also tells other creditors that the government has a claim on the property.

“These are difficult times for the U.S. economy,” said Mr. Shulman. “Many homeowners are at risk of losing their homes. Many are hoping to refinance at lower rates, and in some cases, homeowners are forced to sell their homes and get the best deal they can in the current marketplace.”
CLICK HERE TO READ THE WSJ ARTICLE

Faster IRS responses are good news, because, in the past, they could be slow in getting the necessary information to escrow or a lender. In a market where time is of the essence, any hold up in closing could lose a buyer or financing. I applaud the IRS and their efforts.

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