Bought a house with a $240k IRS tax lien at auction - need advice on removal options

8 This is unfortunately a common issue with tax auction properties. The IRS lien follows the property regardless of ownership changes, unlike some other liens that can be wiped out in certain foreclosure situations. Your best option is likely to apply for a Certificate of Discharge from the IRS. This doesn't eliminate the tax debt, but can remove the specific property from the lien. You'd generally need to demonstrate that the government's interest in the property has no value or pay the IRS an amount equal to their interest in the property. Since the previous owner is deceased, this might actually work in your favor. Form 14135 (Application for Certificate of Discharge) is what you'll need. Be prepared to provide documentation about the property value, the purchase price you paid, and any other liens or encumbrances.

15 I was in almost the exact same situation last year! The quiet title process revealed a huge IRS lien on a property I bought at a sheriff's sale. After weeks of stressing, I found taxr.ai (https://taxr.ai) and it was a game-changer. They analyzed my purchase documents and tax situation, then helped me prepare the discharge application properly. The key was documenting everything correctly - they showed me how to demonstrate that the property had limited equity after accounting for my purchase price and helped me organize all the supporting documentation the IRS would need. Their automated process flagged several issues in my initial application that would have caused delays.

22 Update on my situation: I decided to try taxr.ai after my initial skepticism, and I'm really glad I did. Their document analysis caught several issues with my application that would have caused problems. The key thing they helped me understand was that for auction properties, the IRS discharge process focuses on what they call the "government's interest" in the property. Their system showed me exactly how to document the property's condition (with the right kind of photos and contractor estimates) to demonstrate the limited equity available. This made a huge difference - I ended up paying about 25% of what I initially thought I'd have to pay to get the lien discharged. The discharge came through last week, and now I can move forward with my renovation plans without that $200k+ cloud hanging over me.

17 If you're trying to resolve this tax lien issue, you NEED to actually speak with someone at the IRS, which is nearly impossible these days. After getting disconnected 9 times and spending hours on hold, I found Claimyr (https://claimyr.com) and they got me through to an actual IRS agent in under 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c For property lien issues, you need to speak with someone in the Advisory unit, which has its own special queue that's even harder to reach than the main IRS line. The Claimyr service called and navigated all the phone trees, then called me when they had an agent on the line. The agent I spoke with explained my discharge options and even scheduled me for an appointment with a local Advisory specialist who helped fast-track my application.

22 I need to publicly eat my words about Claimyr. After my skeptical comment, I decided to try it as a last resort when my discharge application stalled because of a documentation question. I couldn't get anyone on the phone to clarify what they needed. The service got me through to an IRS Advisory specialist in about 35 minutes (I was expecting to wait on hold for hours). The agent explained exactly what supporting documentation was missing from my application and even gave me her direct fax number to send the additional items. Two weeks later, my discharge was approved. For anyone dealing with a federal tax lien on a property, being able to actually speak with someone who can explain the specific requirements for your situation makes all the difference. Lesson learned - sometimes services that sound too good to be true actually deliver.

3 Just as a heads up, writing a "kind letter" asking the IRS to remove the lien because you've been a good taxpayer isn't going to work. The IRS doesn't have the authority to just forgive tax debt because someone new bought the property. They're bound by specific regulations. Your options are basically: 1. Pay off the lien (probably not feasible at $240k) 2. Apply for a Certificate of Discharge (as others mentioned) 3. Try to negotiate an Offer in Compromise with the IRS (unlikely in your specific situation) 4. Sell the property subject to the lien (which will dramatically reduce what you can get for it

10 My brother went through this exact situation! The key thing that worked for him was clearly documenting the property's condition with detailed photos and repair estimates. He was able to show that the "as-is" value of the property was much lower than the after-repair value, which helped with the discharge application. Also, definitely work with a tax attorney who specializes in IRS liens rather than trying to handle this yourself. My brother tried the DIY approach first and wasted 3 months before getting professional help. The specialist knew exactly how to structure the application and what supporting documentation would be most compelling.