Mark J. Podolsky explains that IRS liens at tax sales don't permanently block title if the IRS was notified correctly. Under IRS code 7425, the government has 120 days to redeem its interest; after that, the property is free of the lien. Verify notification through a title agent, and you're likely clear.
Section 7425 of the Internal Revenue Code.
120 days.
Hey, it's Mark Podolski, the Land Geek.
Let's have another virtual cup of coffee together.
So for years and years and years.
I don't know, since 2001, I've always.
Been told, when you go to the.
Tax sale, avoid IRS liens like the plague.
They're the only lien besides code liens.
Like you didn't, you know, mow the.
Lawn that don't go away so everybody.
Else gets wiped out at a tax sale except for the irs. At least that's what I always thought. I always thought, you know, it's attached. They attach it to the property and just follows the property wherever they go.
Turns out, thanks to one of my.
Coaching clients, Jerry Deeks, I was wrong.
Jerry, thanks for sending me this information.
All right, let me read you what Jerry wrote me.
All right, if you look at code.
7425, redemption by United States, this is the IRS code.
There it states they have, they being the IRS, have 120 days to redeem their interest provided they were notified correctly.
This is where Tax Title Services comes in and can verify if the IRS was notified correctly. So Tax Title Services is a company that I recommend they help you do your title searches. But you can also have a title company do that as well, an abstractor. You can do it yourself. But when he asked the Tax Title.
Services rep about the IRS lien, they didn't seem at all phased, like it was one of the many liens they deal with consistently.
If the IRS was correctly notified, all.
You have to do is wait 120 days and the property is thin, free and clear from the irs. So just make sure they were notified correctly. That's it. This was also confirmed by a local title agent as well. And as further anecdotal proof, Jerry bought a property in California last spring with an IRS lien and has not heard.
A peep from the irs.
If you want more tips, tricks, techniques on how to make additional income actively or passively buying and selling raw land, go to www.thelanegeek.com. download for free the Passive Income Blueprint, get the ebook how to Avoid the Three Fatal Land Buying Mistakes, and of course, get the always informative and fun podcast delivered each week to your email inbox. This is Mark Podolski, the Land Geek.
Thanks for having a virtual cup of coffee with me. I'll see you next time.
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