Selling Your Florida Home With a Tax Lien: Is It Possible?

Finding out there’s a tax lien on your home creates enormous stress, particularly if you’re planning to sell. A lien doesn’t mean you have to give up on your goals, but it does mean there are extra steps to take before the sale can move forward. Understanding your options and protecting your financial interests is key.

At Ronald Cutler, P.A., our Florida tax-IRS attorney brings more than 50 years of experience as a CPA and former FBI Special Agent investigating tax matters. We help Florida homeowners resolve tax liens and guide them through the process of selling a home when one is in place.

Understanding Tax Liens on Florida Property

A tax lien represents the government’s legal claim against your property when you owe unpaid federal taxes. A Notice of Federal Tax Lien is filed in public records by the IRS, which alerts creditors and can complicate real estate transactions. Before selling your home, you need to know how this affects the process.

Common impacts of a federal tax lien include:

• Prevents refinancing, which can impact your ability to make improvements to the home;
• Makes it difficult to sell the property without resolving the lien;
• Delays closing until the IRS releases or discharges the lien;
• Affects your credit score and limits financing options for buyers.

In Florida, a lien remains attached to your property until the tax debt gets resolved, unless you negotiate other solutions with the IRS.

Options for Selling Your Florida Home With a Tax Lien

Selling a home with a tax lien is possible, but it requires planning and coordination with the IRS. Strategies that can help homeowners move forward include:

• Pay the balance of your tax debt before or during closing to fully release the lien.
• File an IRS Form 14135 requesting a lien discharge, which allows the sale to proceed while the lien gets removed from that specific property.
• Seek a lien subordination, which doesn’t remove the lien but allows other creditors, such as your buyer’s lender, to take priority.
• Negotiate an installment agreement or other resolution with the IRS to manage remaining debt.

Each option has unique requirements, deadlines, and potential consequences. Our experienced Florida tax-IRS attorney can review your situation, negotiate directly with the IRS, and protect your equity in the process.

For Help With Tax Liens, Consult Our Experienced Florida Tax-IRS Attorney

Tax liens don’t have to derail your plans, but ignoring them can lead to delays, unexpected costs, or even losing your chance to sell. Understanding your legal rights and getting professional legal help is vitally important.

Ronald Cutler, P.A. provides trusted legal guidance to Florida homeowners facing complex IRS collection issues. With decades of experience as both a CPA and a former FBI Special Agent, our Florida tax-IRS attorney helps you navigate lien releases, negotiate directly with the IRS, and ensure the sale of your home goes as smoothly as possible. Contact our office today to schedule a consultation and discuss your options.

Sources:

irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien

irs.gov/pub/irs-pdf/f14135.pdf