IRS Plan to Help Distressed Homeowners Falls Short

The Internal Revenue Service has announced a process that is supposed to make it easier for financially distressed homeowners to refinance a mortgage or sell a home by providing options when there is a federal tax lien blocking the transaction.
The expedited process provides for:

Make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan.
Discharge by the IRS of its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.

IRS commissioner Doug Shulman states:

“We don’t want the IRS to be a barrier to people saving …read more