Seller Forgot About IRS Lien
I'm working on a short sale and realize I was premature in submitting the HUD-1 to the lender, since I did this before getting a preliminary PR done on the property. Once the PR came back it shows an IRS tax lien from 12/2001, which the seller had forgotten all about.
Can I amend the HUD-1 previously sent to the lender?
Also, I've heard that there are several ways to negotiate with the IRS, and in some cases they will take a discount on what they are owed? Is this correct, and if so is there a certain percentage or formula that they seem to follow?
If they don't take a discount what are other ways of negotiating with them?
From my experience, the IRS is hard to negotiate with. I would suggest calling around and finding a lawyer that specializes in working with IRS Liens. Find one that knows the people in the IRS office or even used to work for the IRS. It may cost a few thousand dollars, (I once priced it out at $5,000) but you will end up saving even more and won't have to worry about the headaches of all the "red tape".
Hope This Helps,
Mrs. Meltzer
I'd think that a CPA would be better suited. Each classification of tax lien may be viewed differently, and the lattitude for settlement may differ as well.
A CPA would probably be more familar with applicable waivers of penalties or interest .
From a practical point of view, I'd renegotiate with the lender.
The chances of the IRS cutting a deal in time to close this transaction prior to the auction is slim to none. They just don't move or if they do it's very slowlyt.
I have one I'd like to buy(not in foreclosure) that I've had my CPA (well connected) trying to get them to take an offer in comprimise since (it seems like) Lewis & Clark both set out on their expedition. They my never render a discision.