Navigating the complexities of federal tax liens from the IRS can be a daunting task for title agents, yet it’s crucial for ensuring a clear title during real estate transactions. This guide provides a detailed, step-by-step process tailored specifically for title agency employees to effectively handle and resolve federal tax liens, ensuring a smooth closing process.
Step 1: Email the Lien Holder
Step 2: Send Completed Form to the IRS
Step 3: Monitor and Follow Up
Step 4: Receiving IRS Response
Step 5: Communicating with All Involved Parties
Step 6: Ensuring Payment and Clearance of the Lien
Step 7: Final Verification
Step 1: Email the Lien Holder
Initiate the process by contacting the person against whom the lien is registered. Communication is key, and the initial contact should be clear and supportive, providing all necessary instructions to help the lien holder address the issue promptly:
Sample Email Template:
Subject: Action Required: Federal Tax Lien Resolution Needed
Dear [Name],
Our recent title search has revealed a Federal Tax Lien registered in your name, which requires resolution before we can proceed with the closing of your property transaction. To facilitate a timely settlement, please complete IRS Form 8821. This form authorizes us to obtain the final payoff amount needed to clear the lien.
You can download and complete the form using the following link: IRS Form 8821
For detailed instructions on how to complete the form, please visit: Instructions for Form 8821
Please print, sign, and return the completed form to us via email at [INSERT COMPANY EMAIL] or by fax at [INSERT FAX NUMBER].
Your prompt response will help ensure that there are no delays in your property transaction. If you require any assistance or have any questions, please do not hesitate to contact us.
Thank you for your immediate attention to this matter.
Regards,
[Your Name] [Your Title] [Company Name] [Contact Information]
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