is sufficient to close, though many title companies remain nervous about waiving the IRS’ lien based on the letter of commitment. Subordination. According to IRS.gov, “subordination” does not remove the lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. To determine eligibility, refer to IRS Publication 784, “Instructions on How to Apply for a Certificate of Subordination of Federal Tax Lien.” Withdrawal. A “withdrawal” removes the public Notice of Federal Tax Lien and ensures the IRS isn’t competing with other creditors for your property; however, you’re still liable for the amount due. For eligibility, refer to IRS Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien [Internal Revenue Code Section 6323(j)], according to IRS.gov. Two additional withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative. According to IRS.gov, one option may allow withdrawal of your Notice of Federal Tax Lien after the lien’s release. Per the IRS, general eligibility includes: • your tax liability has been satisfied and your lien has been released; • you’re in compliance for the past three years in filing all individual returns, business returns, and information returns; and • you’re current on your estimated tax payments and federal tax deposits, as applicable. The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular
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